Facturing overhead curing overhead ons nistrative expense %24 %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4

Transcribed Image Text:Kesterson Corporation has provided the following information:
Cost per
Cost per
Unit
Period
Direct materials
2$
6.90
Direct labor
$4
3.70
Variable manufacturing overhead
1.30
Fixed manufacturing overhead
9,900
Sales commissions
%$4
1.60
Variable administrative expense
24
0.60
Fixed selling and administrative
expense
24
3,600
The incremental manufacturing cost that the company will incur if it increases production from 4,500 to 4,501 units is closest to:
Multiple Choice
$1.90
$14.10
$1710
$14.70
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