Deboer Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $179 Units in beginning inventory 100 Units produced 1,250 Units sold 1,010 Units in ending inventory 340 Variable costs per unit: Direct materials $66 Direct labor $35 Variable manufacturing overhead $7 Variable selling and administrative $14 Fixed costs: Fixed manufacturing overhead $16,250 Fixed selling and administrative $22,220 What is the total period cost for the month under the variable costing approach? $36,360

Question

Malachi Durham

Business

8 January, 03:28

Deboer Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $179 Units in beginning inventory 100 Units produced 1,250 Units sold 1,010 Units in ending inventory 340 Variable costs per unit: Direct materials $66 Direct labor $35 Variable manufacturing overhead $7 Variable selling and administrative $14 Fixed costs: Fixed manufacturing overhead $16,250 Fixed selling and administrative $22,220 What is the total period cost for the month under the variable costing approach? $36,360

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Answers (1)

Know the Answer?

Lydia Mathews · Answer 1

The correct answer is $52,610.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the total period cost for the month by using following formula:

Total period cost = Total variable Selling and Administrative + Fixed Manufacturing OH + Fixed Selling and Administrative

Where, Total variable Selling and administrative = Variable selling and administrative per unit * Total Units sold

= $14 * 1,010 = $14,140

So, by putting the value in the formula, we get

Total period cost = $14,140 + $16,250 + $22,220

= $52,610