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

Based on the costs given, we can calculate the total period costs to be $49,500.

Period Costs

These are indirect costs that were incurred to sell the goods in question.

Total period cost will be:

= Sales commission + Variable Admin expenses + Fixed selling and administrative expense

= (0.50 x 9,000 units ) + (0.50 x 9,000 units) + 40,500

= $49,500

In conclusion, period costs are $49,500.

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