Wessner Corporation has provided the following information:     Cost per Unit Cost per Period Direct materials $ 6.20   Direct labor $ 2.80   Variable manufacturing overhead $ 1.45   Fixed manufacturing overhead   $ 12,000 Sales commissions $ 1.00   Variable administrative expense $ 0.55   Fixed selling and administrative expense   $ 4,000   The incremental manufacturing cost that the company will incur if it increases production from 4,000 to 4,001 units is closest to:   Multiple Choice   A. $16.00   B. $14.05   C. $10.45   D. $13.45

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Wessner Corporation has provided the following information:
 

  Cost per Unit Cost per Period
Direct materials $ 6.20  
Direct labor $ 2.80  
Variable manufacturing overhead $ 1.45  
Fixed manufacturing overhead   $ 12,000
Sales commissions $ 1.00  
Variable administrative expense $ 0.55  
Fixed selling and administrative expense   $ 4,000

 

The incremental manufacturing cost that the company will incur if it increases production from 4,000 to 4,001 units is closest to:

 

Multiple Choice
 
A. $16.00
 
B. $14.05
 
C. $10.45
 
D. $13.45
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