Kesterson Corporation has provided the following information: Cost per UnitCost per PeriodDirect 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  $7700??If 12,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

A. $48,500
B. $27,500
C. $21,000
D. $53,300


Answer: A

Business

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