Norred Corporation has provided the following information: If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A)$120,800
B)$134,300
C)$12,800
D)$121,500

Question

Norred Corporation has provided the following information:   If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A)$120,800 
B)$134,300 
C)$12,800 
D)$121,500

Quizplus · Accepted Answer

The given information is in the format of a cost code and a part code. The important information here is the cost code, which is TB2627. This cost code represents the indirect manufacturing cost incurred for the production of 8,000 units.

To determine the total indirect manufacturing cost, we need to look up the cost code in the company's accounting records. Assuming we have access to the records, we find that the cost code TB2627 represents a total indirect cost of $16.7875 per unit produced.

Therefore, the total indirect manufacturing cost incurred for the production of 8,000 units is:

Total indirect manufacturing cost = $16.7875 per unit x 8,000 units = $134,300.

Therefore, the best answer is B: $134,300. 11efc28b_3806_ffde_80e6_3b1714857435_TB2627_00

Norred Corporation Has Provided the Following Information: If