158. CSO: 1C1b LOS: 1C1e
Kimber Company has the following unit cost for the current year.
Raw material $20.00
Direct labor 25.00
Variable manufacturing overhead 10.00
Fixed manufacturing overhead 15.00
Total unit cost $70.00
Fixed manufacturing cost is based on an annual activity level of 8,000 units. Based on
these data, the total manufacturing cost expected to be incurred to manufacture 9,000
units in the current year is
a. $560,000.
b. $575,000.
c. $615,000.
d. $630,000.
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