Question

Lagle Corporation has provided the following information:

Cost per Unit Cost per Period
Direct materials $ 4.60
Direct labor $ 3.40
Variable manufacturing overhead $ 1.30
Fixed manufacturing overhead $ 13,200
Sales commissions $ 1.40
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 5,200
For financial reporting purposes, the total amount of period costs incurred to sell 5,500 units is closest to:____________
a) $9,900
b) $5,200
c) $13,200
d) $15,100

Answer 1

Lagle Corporation

For financial reporting purposes, the total amount of period costs incurred to sell 5,500 units is closest to:____________

d) $15,100

Step-by-step explanation:

a) Data and Calculations:

Cost per Unit Cost per Period

Manufacturing costs:

Direct materials $ 4.60

Direct labor $ 3.40

Variable manufacturing overhead $ 1.30

Fixed manufacturing overhead $ 13,200

Selling and Administrative Expenses:

Sales commissions $ 1.40 $7,700

Variable administrative expense $ 0.40 2,200

Fixed selling and administrative expense $ 5,200

Total period costs (financial reporting) = $15,100