Question

Shelp Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.15 Direct labor $ 3.35 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 81,000 Sales commissions $ 0.50 Variable administrative expense $ 0.50 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

Answer:

The total amount of period costs incurred to sell 9,000 units is closest to $49,500

Explanation:

In order to calculate the total amount of period costs incurred to sell 9,000 units we would have to make the following calculation:

Total amount of period costs incurred to sell 9,000 units=Sales commissions+Variable administrative expense+Fixed selling and administrative expense

Sales commissions= 9,000*0.5=$4,500

Variable administrative expense= 9,000*0.5=$4,500

Fixed selling and administrative expense= $40,500

Total amount of period costs incurred to sell 9,000 units=$4,500+$4,500+$40,500

Total amount of period costs incurred to sell 9,000 units=$49,500