Particulars Average Cost per Unit
Direct materials $8.90
Direct labor $5.90
Variable manufacturing overhead $3.40
Fixed manufacturing overhead $6.90
Fixed selling expense $5.40
Fixed administrative expense $4.40
Sales commissions $2.90
Variable administrative expense $2.40
Product costs = Summation of direct labor, direct materials, production supplies, and factory overhead
Product costs per unit = $8.90 + $5.90 + $3.40 + $6.90
Product costs per unit = $25.10
Period costs include selling and administrative expenses
Period costs per unit = $5.40 + $4.40 + $2.90 + $2.40
Period costs per unit = $15.10
Total product costs incurred to make 27,500 units = $25.10 x 27,500
Total product costs incurred = $690,250
Total period costs incurred to make 27,500 units = $15.10 x 27,500
Total period costs = $415,250
Total product costs incurred to make 31,000 units = $25.10 x 31,000
Total period costs = $778,100
Total period costs incurred to make 24,000 units = $15.10 x 24,000
Total period costs = $362,400
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