1. Schwiesow Corporation has provided the following information:

	Cost per Unit		Cost per Period
Direct materials	$	7.05
Direct labor	$	3.50
Variable manufacturing overhead	$	1.65
Fixed manufacturing overhead			$	11,000
Sales commissions	$	1.00
Variable administrative expense	$	0.40
Fixed selling and administrative expense			$	5,500

The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:

Multiple Choice

$14.40

$15.10

$16.90

$12.20

2.

Krier Corporation uses a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $738,000 and 30,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $792,000 and 31,500 total direct labor-hours during the period.

The predetermined overhead rate is closest to:

Multiple Choice

$26.40

$25.14

$23.43

$24.60