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Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.30 Direct labor $ 3.30 Variable manufacturing overhead $
Kesterson Corporation has provided the following information:
Cost per Unit | Cost per Period | |||
Direct materials | $ | 6.30 | ||
Direct labor | $ | 3.30 | ||
Variable manufacturing overhead | $ | 1.25 | ||
Fixed manufacturing overhead | $ | 15,000 | ||
Sales commissions | $ | 1.30 | ||
Variable administrative expense | $ | 0.60 | ||
Fixed selling and administrative expense | $ | 4,200 | ||
The incremental manufacturing cost that the company will incur if it increases production from 6,000 to 6,001 units is closest to:
Multiple Choice
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$10.85
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$13.35
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$15.95
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$13.95
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