Schwiesow Corporation has provided the following information

Schwiesow Corporation has provided the following information: Cost Cost per per Period Unit $7.05 $3.50 $1.65 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales Comm1ssions Variable administrative expense Fixed selling and administrative expense $11,000 $1.00 $0.40 $ 5,500 For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to

Solution

Fixed Selling and Administrative Expense = $5,500
Variable Administrative Expense = $0.40 per unit
Sales Commission = $1.00 per unit
Number of units produced = 5,000 units

Period Cost = Fixed Selling and Administrative Expense + Variable Administrative Expense + Sales Commission
Period Cost = $5,500 + $0.40 * 5,000 + $1.00 * 5,000
Period Cost = $5,500 + $2,000 + $5,000
Period Cost = $12,500