Question

In: Accounting

Glew Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...

Glew Corporation has provided the following information:

Cost per Unit Cost per Period
Direct materials $ 6.00
Direct labor $ 3.35
Variable manufacturing overhead $ 1.75
Fixed manufacturing overhead $ 8,800
Sales commissions $ 1.00
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 4,000

For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

Multiple Choice

$9,600

$6,400

$5,600

$4,000

Solutions

Expert Solution

For Financial reporting purposes, the total amount of period costs incurred to sell 4000 units is:

Sales Commission                                     $1.0
Var. admin expenses      $0.40
Var. selling and admin. expenses per unit     $1.40

Period Cost is :
Variable selling & admin. cost                  $5600    (4000*1.4)
Fixed selling & admin. cost                     $4000    
Total Period Cost of Selling                      $9600

Hence answer is a). $9,600


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