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
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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
