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Schwiesow Corporation has provided the following information:_________. Cost per Unit Cost per PeriodDirect materials $ 7.05 Direct labor $ 3.50 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 11,000Sales commissions $ 1.00 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 5,500For financial reporting purposes, the total amount of product costs incurred to make 5,000 units is closest to:A. $72,000B. $61,000C. $11,000D. $77,000

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Answer:

Total product cost= $72,000

Explanation:

Giving the following information:

Direct materials $7.05

Direct labor $3.50

Variable manufacturing overhead $1.65

Total unitary variable cost= $12.2

Fixed manufacturing overhead $11,000

The product costs are the sum of direct material, direct labor, and total manufacturing overhead:

Total product cost= 5,000*12.2 + 11,000

Total product cost= $72,000

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