Delvin Corporation, which has only one product, has provided the following data

Question

Delvin Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

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

Noreen 4e Rechecks 2017-24-03

$7,200

$42,000

$49,200

$35,700

Selling price $120 Units in beginning inventory 0 Units produced 1,800 Units sold 1,500 Units in ending inventory 300 Variable costs per unit: Direct materials $40 Direct labor $42 Variable manufacturing overhead $2 Variable selling and administrative $9 Fixed costs: Fixed manufacturing overhead $7,200 Fixed selling and administrative $28,500

Explanation / Answer

C. $49,200

Variable selling and administrative($9 per unit x 1,500 units sold) $13,500 Fixed manufacturing overhead $7,200 Fixed selling and administrative $28,500 Total period costs $49,200

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