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Kesterson Corporation has provided the following information:
| | Cost per Unit | Cost per Period |
| Direct materials | $ | 6.80 | | |
| Direct labor | $ | 3.50 | | |
| Variable manufacturing overhead | $ | 1.75 | | |
| Fixed manufacturing overhead | | | $ | 27,500 |
| Sales commissions | $ | 1.40 | | |
| Variable administrative expense | $ | 0.40 | | |
| Fixed selling and administrative expense | | | $ | 7,700 |
| |
If 12,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
Multiple Choice
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$21,000
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$53,300
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$48,500
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$27,500
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Pedregon Corporation has provided the following information:
| | Cost per Unit | | Cost per Period |
| Direct materials | $ | 6.80 | | | |
| Direct labor | $ | 4.00 | | | |
| Variable manufacturing overhead | $ | 1.60 | | | |
| Fixed manufacturing overhead | | | | $ | 12,000 |
| Sales commissions | $ | 0.80 | | | |
| Variable administrative expense | $ | 0.85 | | | |
| Fixed selling and administrative expense | | | | $ | 5,700 |
| |
If the selling price is $21.00 per unit, the contribution margin per unit sold is closest to:
Multiple Choice
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