Based on the details given, the following are true:
- 1. Incremental manufacturing cost = $14.60
- 2. Incremental cost = $17.50
<h3>Incremental manufacturing cost if production increased from 20,250 to 20,251</h3>
The fixed cost will not change as the production amount is still below 24,500 units. Incremental manufacturing cost will therefore be:
= Direct material + Direct labor + Variable overhead
= 7.70 + 4.70 + 2.20
= $14.60
<h3>Incremental cost for increased from 20,250 to 20,251</h3>
This will include all costs that are not fixed.
= Incremental manufacturing cost + Sales commissions + Variable admin expense
= 14.60 + 1.70 + 1.20
= $17.50
Find out more on incremental manufacturing cost at brainly.com/question/8527680.
Companies report prior period adjustments, net of any income tax effects in the single-step income statement.
A single step income statement is one of two commonly used formats for the income statement or profit and loss statement. It uses only one subtraction to arrive at net income. On the other hand, a multi-step statement reveals the company's gross profit, which is the difference between its sales revenue and its cost of goods sold, and operating profit, which is the difference between its gross profit and its operating expenses.