Answer:
Instructions are listed below
Explanation:
Giving the following information:
Direct materials $ 74,000
Direct labor $ 37,500
Variable manufacturing overhead $ 17,000
Fixed manufacturing overhead 29,500
Total manufacturing overhead $ 46,500
Variable selling expense $ 13,000
Fixed selling expense 20,000
Total selling expense $ 33,000
Variable administrative expense $ 4,500
Fixed administrative expense 26,000
Total administrative expense $ 30,500
- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.
- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.
Period costs= total selling expense + total administrative expense
Period costs= 33000 + 30500= $63,500
Product costs= direct materials + direct labor + MOH
Product costs= 74,000 + 37,500 + 46,500= $158,000
