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Kesterson Corporation has provided the following information: Cost...

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Accounting

Kesterson Corporation has provided the following information:

Cost per Unit Cost per Period
Direct materials $ 6.80
Direct labor $ 3.50
Variable manufacturing overhead $ 1.75
Fixed manufacturing overhead $ 27,500
Sales commissions $ 1.40
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 7,700

If 12,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Multiple Choice

  • $21,000

  • $53,300

  • $48,500

  • $27,500

____________________________________________________________________________________________________________________________________________

Pedregon Corporation has provided the following information:

Cost per Unit Cost per Period
Direct materials $ 6.80
Direct labor $ 4.00
Variable manufacturing overhead $ 1.60
Fixed manufacturing overhead $ 12,000
Sales commissions $ 0.80
Variable administrative expense $ 0.85
Fixed selling and administrative expense $ 5,700

If the selling price is $21.00 per unit, the contribution margin per unit sold is closest to:

Multiple Choice

  • $2.95

  • $4.60

  • $6.95

  • $10.20

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