Bellucci corporation has provided the following information: cost per unit cost per perioddirect materials $ 6.85 direct labor $ 3.80 variable manufacturing overhead $ 1.35 fixed manufacturing overhead $ 108,000sales commissions $ 1.30 variable administrative expense $ 0.65 fixed selling and administrative expense $ 39,150the incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to:

$12

Explanation:

Total Manufacturing Cost at 9,000 units:

= Direct materials + Direct labor  + Variable manufacturing overhead + Fixed manufacturing overhead

= ($6.85 per unit × 9,000) + ($3.80 per unit × 9,000) + ($1.35 per unit × 9,000) + $108,000

= $61,650 + $34,200 + $12,150 + $108,000

= $216,000

Total Manufacturing Cost at 9,001 units:

= Direct materials + Direct labor  + Variable manufacturing overhead + Fixed manufacturing overhead

= ($6.85 per unit × 9,001) + ($3.80 per unit × 9,001) + ($1.35 per unit × 9,001) + $108,000

= $61,656.85 + $34,203.80 + $12,151.35 + $108,000

= $216,012

Therefore, the incremental manufacturing cost:

= Total Manufacturing Cost at 9,001 units - Total Manufacturing Cost at 9,000 units

= $216,012 - $216,000

= $12

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