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
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