Question

Shelp Corporation has provided the following information: Cost per Unit $7.15 $3.35 $1.40 Cost per Period Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $81,000 $0.50 0.50 Sales commissions Variable administrative expense Fixed selling and administrative expense $40,500 For financial reporting purposes, the total amount of period costs incurred to sell 9,000 units is closest to:

Answer 1

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Answers is highlighted in yellow: Solution: $49,500 Answer Explanation: (9000 0.50) (9000*0.50) $ Sales Commission 4,500 Variable Admin expense 4,500 Fixed selling and admin expense 40,500 Total Period costs 49,500