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 <u>$44,550</u>
Total Period Cost <u>$53,550</u>
For financial reporting purposes, the total amount of period costs incurred to sell 9,000 units is $53,550.
