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10 April, 17:09

Bowering Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.60 Direct labor $ 3.85 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 81,000 Sales commissions $ 0.50 Variable administrative expense $ 0.50 Fixed selling and administrative expense $ 44,550 For financial reporting purposes, the total amount of period costs incurred to sell 9,000 units is closest to: 1. $35,700 2. $9,000 3. $53,550 4. $44,550

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  1. 10 April, 17:38
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    3. $53,550

    Explanation:

    Product Cost:

    Cost per Unit Cost per Period Direct materials $ 6.60

    Direct labor $ 3.85

    Variable manufacturing overhead $ 1.50

    Fixed manufacturing overhead $ 81,000

    Period Costs:

    Sales commissions ($0.50 x 9,000) $4,500

    Variable administrative expense ($0.50 x 9,000) $4,500

    Fixed selling and administrative expense $44,550

    Total Period Cost $53,550

    For financial reporting purposes, the total amount of period costs incurred to sell 9,000 units is $53,550.
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