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Home Q & A Board Other Fields Homework Help Business Accounting
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Ashurbanipal Ashurbanipal
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A year ago

Varela Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:

Average
Cost per Unit
Direct materials$ 5.95
Direct labor$ 3.30
Variable manufacturing overhead$ 1.60
Fixed manufacturing overhead$ 3.00
Fixed selling expense$ 0.50
Fixed administrative expense$ 0.40
Sales commissions$ 1.50
Variable administrative expense$ 0.50

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



▸ $7,700

▸ $11,600

▸ $3,600

▸ $8,000
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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kady_kelsey2kady_kelsey2
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