Question
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month:
Direct materials $ 88,000 Direct labor $ 44,500 Variable manufacturing overhead $ 22,600 Fixed manufacturing overhead 33,700 Total manufacturing overhead $ 56,300 Variable selling expense $ 15,800 Fixed selling expense 25,600 Total selling expense $ 41,400 Variable administrative expense $ 5,900 Fixed administrative expense 28,800 Total administrative expense $ 34,700
With respect to cost classifications for decision making:
1. If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost would it have incurred to make the additional unit?
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