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17 September, 01:55

Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.75 Direct labor $ 3.40 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 25,200 Sales commissions $ 1.30 Variable administrative expense $ 0.30 Fixed selling and administrative expense $ 6,300 If 11,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

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  1. 17 September, 04:05
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    Indirect manufacturing cost = $44,750

    Explanation:

    As per the data given in the question,

    Direct material = $6.75

    Direct Labor = $3.40

    Variable manufacturing overhead = $1.70

    Fixed manufacturing overhead = $25,200

    The computation of the indirect manufacturing cost is shown below:

    Indirect manufacturing cost = Variable overhead + Fixed overhead

    = $11,500 units * $1.7 + $25,200

    = $44,750

    We simply added the variable overhead and the fixed overhead so that the indirect manufacturing cost could come
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