Question

Bressette Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.20 Direct labor $ 3.70 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 10,000 Sales commissions $ 1.50 Variable administrative expense $ 0.50 Fixed selling and administrative expense $ 5,000 For financial reporting purposes, the total amount of product costs incurred to make 5,000 units is closest to: $65,750 $10,000 $70,750 $55,750

Answer 1

Answer:

$65,750

Explanation:

Given:

Direct materials = $6.20

Direct labor = $3.70

Variable manufacturing overhead = $1.25

Fixed manufacturing overhead = $10,000

Sales commissions = $1.50

Variable administrative expense = $0.50

Fixed selling and administrative expense = $5,000

Number of unit Produced = 5,000 units

Calculation:

Production Cost = Direct Material cost + Direct labor cost + variable manufacturing overhead + Fixed manufacturing overheads.

= (5000 x $6.20) + (5000 x $3.70) + (5000 x $1.25) + $10,000

= ($31,000) + ($18,500) + ($6,250) + $10,000

= $65,750