Kimber Company has the following unit costs for the current year: Raw materials Direct labor Variable manufacturing overhead. Fixed manufacturing overhead Total unit cost $20.00 25.00 10.00 15.00 $70.00 Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is: Oa. $560,000. Ob. $615,000. Oc. $630,000. Od. $575,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kimber Company has the following unit costs for the current year:

- Raw materials: $20.00
- Direct labor: $25.00
- Variable manufacturing overhead: $10.00
- Fixed manufacturing overhead: $15.00

Total unit cost: $70.00

Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is:

a. $560,000  
b. $615,000  
c. $630,000  
d. $575,000
Transcribed Image Text:Kimber Company has the following unit costs for the current year: - Raw materials: $20.00 - Direct labor: $25.00 - Variable manufacturing overhead: $10.00 - Fixed manufacturing overhead: $15.00 Total unit cost: $70.00 Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on these data, the total manufacturing cost expected to be incurred to manufacture 9,000 units in the current year is: a. $560,000 b. $615,000 c. $630,000 d. $575,000
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