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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Wessner Corporation has provided the following information:
Cost per Unit | Cost per Period | |
---|---|---|
Direct materials | $ 6.20 | |
Direct labor | $ 2.80 | |
Variable manufacturing |
$ 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
Multiple Choice
A. $16.00
B. $14.05
C. $10.45
D. $13.45
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