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Exam #2 Tools Help Help Save Davison Corporat tion, which has only one product,

ID: 2436883 • Letter: E

Question

Exam #2 Tools Help Help Save Davison Corporat tion, which has only one product, has provided the following data concerning its most recent month of operations Selling price $ 95 Units in beginning inventory Units produced Units sold Units in ending inventory 5,000 4,900 100 Variable costs per unit: $ 26 $ 40 Direct materials Direct labor variable manufactur ?ng?ve rhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense $73,500 $40,000

Explanation / Answer

A. $133,100

Total variable selling and administrative cost = $4 × 4,900 = $19,600

Period cost = Total variable selling and administrative cost + Fixed manufacturing overhead + Fixed selling and administrative cost

= $19,600 + $40,000 + $73,500 = $133,100

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