Biology Forums - Study Force

Phaup Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$ 4.85
Direct labor	$ 4.00
Variable manufacturing overhead	$ 1.75
Fixed manufacturing overhead	$ 3.90
Fixed selling expense	$ 0.90
Fixed administrative expense	$ 0.60
Sales commissions	$ 0.50
Variable administrative expense	$ 0.45

For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

▸ $8,200

▸ $12,250

▸ $7,500

▸ $4,750

Content hidden