A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 163 Units in beginning inventory 100 Units produced 10,300 Units sold 9,900 Units in ending inventory 500 Variable costs per unit: Direct materials $ 48 Direct labor $ 45 Variable manufacturing overhead $ 15 Variable selling and administrative expense $ 10 Fixed costs: Fixed manufacturing overhead $ 298,700 Fixed selling and administrative expense $ 128,700 What is the total period cost for the month under variable costing

Question

Haylee Ford

Business

17 May, 02:18

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 163 Units in beginning inventory 100 Units produced 10,300 Units sold 9,900 Units in ending inventory 500 Variable costs per unit: Direct materials $ 48 Direct labor $ 45 Variable manufacturing overhead $ 15 Variable selling and administrative expense $ 10 Fixed costs: Fixed manufacturing overhead $ 298,700 Fixed selling and administrative expense $ 128,700 What is the total period cost for the month under variable costing

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Keira Roman · Answer 1

Total Period cost for the month = $427,400.00

Explanation:

Under variable costing,

Period costs are fixed costs

Fixed Manufacturing Overhead = $298,700.00

Fixed selling & Admin costs = $128,700.00

Total Period cost for the month = $427,400.00