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Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 4.80 Direct labor $ 3.80 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 10,800 Sales commissions $ 1.80 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 6,800 For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

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Answer:

Total periods costs= $33,200

Explanation:

Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

Fixed period costs= Fixed selling and administrative expense  + Fixed manufacturing overhead

Fixed period costs= 6,800 + 10,800

Fixed period costs= $17,600

Variable period costs= Variable manufacturing overhead + Sales commissions + Variable administrative expense

Variable period costs= (1.5 + 1.8 + 0.6)*4,000

Variable period costs= $15,600

Total periods costs= $33,200

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