### Kesterson Corporation Cost Analysis Kesterson Corporation has provided the following cost information: | **Cost Item** | **Cost per Unit** | **Cost per Period** | |--------------------------------------|-------------------|---------------------| | Direct materials | $7.20 | | | Direct labor | $4.30 | | | Variable manufacturing overhead | $1.60 | | | Fixed manufacturing overhead | | | | Sales commissions | | $21,000 | | Variable administrative expense | $2.20 | | | Fixed selling and administrative expense | | $6,000 | --- If 7,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to: #### Multiple Choice Options: - $12,000 - $36,750 - $33,000 This information is essential for determining the indirect manufacturing costs, which include both the variable manufacturing overhead and the fixed manufacturing overhead incurred per unit production.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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### Kesterson Corporation Cost Analysis

Kesterson Corporation has provided the following cost information:

| **Cost Item**                        | **Cost per Unit** | **Cost per Period** |
|--------------------------------------|-------------------|---------------------|
| Direct materials                     | $7.20             |                     |
| Direct labor                         | $4.30             |                     |
| Variable manufacturing overhead      | $1.60             |                     |
| Fixed manufacturing overhead         |                   |                     |
| Sales commissions                    |                   | $21,000             |
| Variable administrative expense      | $2.20             |                     |
| Fixed selling and administrative expense |               | $6,000              |

---

If 7,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

#### Multiple Choice Options:
- $12,000
- $36,750
- $33,000

This information is essential for determining the indirect manufacturing costs, which include both the variable manufacturing overhead and the fixed manufacturing overhead incurred per unit production.
Transcribed Image Text:### Kesterson Corporation Cost Analysis Kesterson Corporation has provided the following cost information: | **Cost Item** | **Cost per Unit** | **Cost per Period** | |--------------------------------------|-------------------|---------------------| | Direct materials | $7.20 | | | Direct labor | $4.30 | | | Variable manufacturing overhead | $1.60 | | | Fixed manufacturing overhead | | | | Sales commissions | | $21,000 | | Variable administrative expense | $2.20 | | | Fixed selling and administrative expense | | $6,000 | --- If 7,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to: #### Multiple Choice Options: - $12,000 - $36,750 - $33,000 This information is essential for determining the indirect manufacturing costs, which include both the variable manufacturing overhead and the fixed manufacturing overhead incurred per unit production.
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