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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price $157
Units in beginning inventory 200
Units produced 7,900
Units sold 7,500
Units in ending inventory 600

Variable costs per unit:
Direct materials $47
Direct labor $45
Variable manufacturing overhead $7
Variable selling and administrative expense $5

Fixed costs:
Fixed manufacturing overhead $260,700
Fixed selling and administrative expense $120,000

Required:
What is the total period cost for the month under variable costing?

Respuesta :

Zviko

Answer:

$418,200

Explanation:

Period Costs under Variable Costing include (1) Fixed Manufacturing Overheads and (2) All Non-Manufacturing Expenses.

Calculation of Period Costs

Fixed manufacturing overhead                                             $260,700

Fixed selling and administrative expense                            $120,000

Variable selling and administrative expense ($5  × 7,500)    $37,500

Total Period Cost                                                                    $418,200

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