Kimber Company has the following unit costs for the current year: Raw materials................................................................$20.00 Direct labor.....................................................................25.00 Variable manufacturing
Question:
Kimber Company has the following unit costs for the current year:
Raw materials................................................................$20.00
Direct labor.....................................................................25.00
Variable manufacturing overhead..............................10.00
Fixed manufacturing overhead..................................15.00
Total unit cost...............................................................$70.00
Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is:
a. $560,000.
b. $575,000.
c. $615,000.
d. $630,000.
Step by Step Answer:
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton