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

To calculate the total amount of indirect manufacturing cost incurred, we need to first find the indirect manufacturing cost per unit.
Indirect manufacturing cost per unit = Total indirect manufacturing cost / Total units produced
= $1,670,000 / 100,000 units
= $16.70 per unit

Now, we can calculate the total amount of indirect manufacturing cost incurred for 8,000 units produced:
Total indirect manufacturing cost for 8,000 units = Indirect manufacturing cost per unit x Number of units produced
= $16.70 x 8,000
= $133,600

The closest option is B, $134,300.

Norred Corporation Has Provided the Following Information: If 8,000