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Mashcka [7]
3 years ago
8

Fiori Corporation's relevant range of activity is 4,700 units to 11,500 units. When it produces and sells 8,100 units, its avera

ge costs per unit are as follows: Average Cost per Unit Direct materials $ 6.50 Direct labor $ 3.90 Variable manufacturing overhead $ 2.20 Fixed manufacturing overhead $ 2.50 Fixed selling expense $ 0.95 Fixed administrative expense $ 0.85 Sales commissions $ 1.35 Variable administrative expense $ 0.85 The incremental manufacturing cost that the company will incur if it increases production from 10,500 to 10,501 units is closest to:
Business
1 answer:
Snezhnost [94]3 years ago
8 0

Answer:

$12.6

Explanation:

Calculation for incremental manufacturing cost

The incremental manufacturing cost will be the addition of the following :

Direct materials $ 6.50

Direct labor $ 3.90

Variable manufacturing overhead $ 2.20

Incremental manufacturing cost $12.60

Therefore incremental manufacturing cost will be $12.60

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