Question

Norred Corporation has provided the following information: Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense 7.50 3.70 1.60 1.50 $ 045 Cost per Period 121,500 44,500 If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: A) $120,800 B) $134,300 C) $12,800 D) $121,500

Answer 1

Answer:

$134,300

Explanation:

Total indirect manufacturing cost = (Unit Produced * Variable manufactured overhead) + Fixed manufacturing overhead

= (8,000 * 1.60) + 121,500

=12,800 + 121,150

=$134,300

Hencc, the total amount of indirect manufacturing cost is $134,300