Question

Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.20 Direct labor $ 3.10 Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 14,000 Sales commissions $ 1.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 4,500 If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to

Answer 1

Answer:

Indirect manufacturing cost=  $22100

Explanation:

We are provided with the following information:

Direct materials $ 6.20

Direct labor $ 3.10

Variable manufacturing overhead $ 1.35

Fixed manufacturing overhead $ 14,000

Sales commissions $ 1.50

Variable administrative expense $ 0.40

Fixed selling and administrative expense $ 4,500

6,000 units are produced

Indirect manufacturing cost= variable overhead + fixed manufacturing overhead= 1,35*6000+14000= $22100