Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 176 Units in beginning inventory 0 Units produced 10,800 Units sold 7,600 Units in ending inventory 3,200 Variable costs per unit: Direct materials $ 54 Direct labor $ 48 Variable manufacturing overhead $ 12 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 388,800 Fixed selling and administrative expense $ 136,800 What is the total period cost for the month under variable costing

Answer 1

Answer:

Total period cost= $174,800

Explanation:

The period costs are all the costs not incurred in production. Usually includes administrative, marketing, finance costs, etc.

Periods costs:

Variable selling and administrative expense= $5

Fixed selling and administrative expense $ 136,800

To calculate the total variable cost, we will use the units sold:

Total varaible cost= 5*7,600= 38,000

Fixed selling and administrative expense= 136,800

Total period cost= $174,800