Question

Lagle Corporation has provided the following information: Cost per Cost per Period Unit $4.85 Direct materials $3.35 Direct labor Variable manufacturing overhead Fixed manufacturing overhead $1.35 $8,000 Sales commissions $1.50 Variable administrative expense $0.45 Fixed selling and administrative expense $4,400 For financial reporting purposes, the total amount of period costs incurred to sell 4,0000 units is closest to:

Answer 1

Solution:

Total period costs = costs other than product costs

= sales commission + variable administrative expense + fixed selling and administrative

= $1.50*4000 + $0.45*4000 + $4400

= $12,200