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Lesechka [4]
3 years ago
12

Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.20 Direct labor

$ 3.10 Variable manufacturing overhead $ 1.35 Fixed manufacturing overhead $ 14,000 Sales commissions $ 1.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 4,500 If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to
Business
1 answer:
Ludmilka [50]3 years ago
5 0

Answer:

Indirect manufacturing cost=  $22100

Explanation:

We are provided with the following information:

Direct materials $ 6.20

Direct labor $ 3.10

Variable manufacturing overhead $ 1.35

Fixed manufacturing overhead $ 14,000

Sales commissions $ 1.50

Variable administrative expense $ 0.40

Fixed selling and administrative expense $ 4,500

6,000 units are produced

Indirect manufacturing cost= variable overhead + fixed manufacturing overhead= 1,35*6000+14000= $22100

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Kay [80]

Answer:

We should discontinue Product B

Explanation:

We should check if Product B generates a contribution or not:

We subtract from the sales revenues the variable cost:

revenue                                   39,500

variable cost of goods sold   (25,500)

variable selling expenses   <u>   (16,500) </u>

Contribution                              (2,500)

<em>As the contribution is negative, we should discontinue </em>Product B as is less expensevely to stop production than continue.

3 0
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Answer:

True

Explanation:

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Answer:

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7 0
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