#$3$: Anderson Corporation

Anderson Corporation has provided the following information:

Direct materials

Direct labor

Variable manufacturing overhead

Fixed manufacturing overhead

Sales commissions $($cost per unit$)$

Variable administrative expense

Fixed selling and administrative expense

Cost perCost per

Unit Period

$$6\mathrm{.}00$

$$3\mathrm{.}35$

$$1\mathrm{.}75$

$$1\mathrm{.}00$

$$0\mathrm{.}40$

Assuming a production level of $5000$ units, answer the following:

What are the prime costs?

What are the conversion costs?

What are the product costs?

What are the period costs?

Assume Absorption Costing $($Chapter $7)$ and a selling price of $$75/$unit$.$

Prepare a traditional format income statement for the period.