Question

Delvin Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $199 Units in beginning inventory 0 Units produced 1,930 Units sold 1,565 Units in ending inventory 365 Variable costs per unit: Direct materials $53 Direct labor $68 Variable manufacturing overhead $15 Variable selling and administrative $22 Fixed costs: Fixed manufacturing overhead $9,450 Fixed selling and administrative $35,200 What is the total period cost for the month under variable costing?

Answer 1

Answer:

Total Perdiod Cost 44,650

Explanation:

A period cost cannot be capitalized into inventory

Under Variable costing, the fixed cost are period cost.

So total period cost = total fixed cost

Fixed manufacturing overhead $9,450

Fixed selling and administrative $35,200

Total Fixed Cost 44,650