The incremental manufacturing cost that the company will incur if it increases production from 6,000 to 6,001 units is closest to:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Kesterson Corporation has provided the following information:
Cost Cost per
Period
per
Unit
$6.30
$3.30
$1.25
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
$15,000
$1.30
$0.60
Sales commissions
Variable administrative expense
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:
Transcribed Image Text:Kesterson Corporation has provided the following information: Cost Cost per Period per Unit $6.30 $3.30 $1.25 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $15,000 $1.30 $0.60 Sales commissions Variable administrative expense 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:
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