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:

Question

03-09-2021
Business

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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:

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