1 - Lagle Corporation has provided the following information:

	Cost per Unit			Cost per Period
Direct materials	$	4.90
Direct labor	$	4.00
Variable manufacturing overhead	$	1.60
Fixed manufacturing overhead				$	8,700
Sales commissions	$	2.00
Variable administrative expense	$	0.35
Fixed selling and administrative expense				$	5,700

For financial reporting purposes, the total amount of period costs incurred to sell 3,000 units is closest to:

Multiple Choice

• $12,750

• $7,050

• $5,700

• $8,700

2 - Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:

Estimated machine-hours		72,700
Estimated variable manufacturing overhead	$	3.10	per machine-hour
Estimated total fixed manufacturing overhead	$	838,730

The predetermined overhead rate for the recently completed year was closest to:

Multiple Choice

• $8.67 per machine-hour

• $14.64 per machine-hour

• $6.83 per machine-hour

• $9.30 per machine-hour