Question

Lagle Corporation has provided the following information: Cost per Period Cost per Unit $5.05 $3.50 $1.75 $ 7,200 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $1.40 $0.50 $ 7,700 For financial reporting purposes, the total amount of period costs incurred to sell 4,500 units is closest to:

• $16,250

• $8,550

• $7,700

Answer 1

Period costs = Sales commissions + Variable administrative expense + Fixed selling and administrative expense

= ($1.4 * 4,500) + ($0.5 * 4,500) + $7,700

= $16,250