Question

Bellucci Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.90 Direct labor $ 3.90 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 102,850 Sales commissions $ 1.00 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 37,400 The incremental manufacturing cost that the company will incur if it increases production from 8,500 to 8,501 units is closest to (assume that the increase is within the relevant range): Brewer 8e Rechecks 2018-06-08 a. $27.30 b. $30.40 c. $24.30 d. $12.20

Answer 1

Answer:

d. $12.20

Explanation:

We list the threee cost ocomponent and then, we go:

Period Direct materials $ 6.90

Direct labor $ 3.90

Variable manufacturing overhead $ 1.40

Total marginal cost (cost generated for prodction an aditional units )

Those are: 12.20 pññars