Lagle Corporation has provided the following information: Cost per Unit Cost per Period
Direct materials $ 4.60
Direct labor $ 3.40
Variable manufacturing overhead $ 1.30
Fixed manufacturing overhead $ 13,200
Sales commissions $ 1.40
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 5,200
For financial reporting purposes, the total amount of period costs incurred to sell 5,500 units is closest to:
a) $9,900
b) $5,200
c) $13,200
d) $15,100

Lagle Corporation

For financial reporting purposes, the total amount of period costs incurred to sell 5,500 units is closest to:

d) $15,100

Explanation:

a) Data and Calculations:

                                                   Cost per Unit       Cost per Period

Manufacturing costs:

Direct materials                               $ 4.60

Direct labor                                      $ 3.40

Variable manufacturing overhead  $ 1.30

Fixed manufacturing overhead                                  $ 13,200

Selling and Administrative Expenses:

Sales commissions                         $ 1.40                    $7,700

Variable administrative expense  $ 0.40                      2,200

Fixed selling and administrative expense                 $ 5,200

Total period costs (financial reporting) =                    $15,100

answer/// equals both average variable cost and average total cost at their respective minimums;