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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

Respuesta :

hyderali230

Answer:

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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