Richardson Company The following information is available for Richardson Company for its first year of operations:

Sales in units 5,000

Production in units 8,000

Manufacturing costs:

Direct labor $3 per unit

Direct material $5 per unit

Variable overhead $1 per unit

Fixed overhead $100,000

Net income (absorption method) $30,000

Sales price per unit $40

Refer to Richardson Company.What was the total amount of Selling,General and Administrative expense incurred by Richardson Company? A)$30,000 B)$62,500 C)$6,000 D)can't be determined from the information given

Question

Richardson Company The following information is available for Richardson Company for its first year of operations:

Sales in units	5,000
Production in units	8,000
Manufacturing costs:
Direct labor	$3 per unit
Direct material	$5 per unit
Variable overhead	$1 per unit
Fixed overhead	$100,000
Net income (absorption method)	$30,000
Sales price per unit	$40

Refer to Richardson Company.What was the total amount of Selling,General and Administrative expense incurred by Richardson Company? A)$30,000 B)$62,500 C)$6,000 D)can't be determined from the information given

Quizplus · Accepted Answer

The total amount of Selling, General, and Administrative expense incurred by Richardson Company is the sum of both the Selling expenses and General and Administrative expenses, which is $50,000 + $12,500 = $62,500. Therefore, the correct answer is B) $62,500.

Richardson Company The Following Information Is Available for Richardson Company for Its