The final calculations give us: 1. Total Amount of Product Costs (for 30,750 units) = $531,225. 2. Total Amount of Period Costs Incurred (for 30,750 units) = $629,625. 3. Total Amount of Product Costs (for 35,500 units) = $613,550. 4. Total Amount of Period Costs Incurred (for 26,000 units) = $533,000
1. Total Amount of Product Costs (for 30,750 units):
(Direct materials + Direct labor + Variable manufacturing overhead) × Number of units
(8.60 + 5.60 + 3.10) × 30,750 = $531,225
2. Total Amount of Period Costs Incurred (for 30,750 units):
(Fixed manufacturing overhead + Fixed selling expense + Fixed administrative expense + Sales commissions + Variable administrative expense) × Number of units
(6.60 + 5.10 + 4.10 + 2.60 + 2.10) × 30,750 = $629,625
3. Total Amount of Product Costs (for 35,500 units):
(Direct materials + Direct labor + Variable manufacturing overhead) × Number of units
(8.60 + 5.60 + 3.10) × 35,500 = $613,550
4. Total Amount of Period Costs Incurred (for 26,000 units):
(Fixed manufacturing overhead + Fixed selling expense + Fixed administrative expense + Sales commissions + Variable administrative expense) × Number of units
(6.60 + 5.10 + 4.10 + 2.60 + 2.10) × 26,000 = $533,000