Help Save Gabuat Corporation, which has only one product, has provided the follo

Question

Help Save Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations Selling price $ 106 Units in beginning inventory Units produced Units sold Units in ending inventory 2,600 2,200 400 Variable costs per unit: S 46 $ 28 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: $33,800 Fixed manufacturing overhead Fixed selling and administrative expense$ 8,800 Prey 9 of 25 li Next> TOSHIBA

Explanation / Answer

Under Variable costing, only fixed manufacturing overhead are considered to be PERIOD COST. Variable cost related to manufacturing are product costs under Variable costing.

Hence, in the given case, Fixed manufacturing overhead = PERIOD COST = $33,800

Correct answer is therefore, Option 'B' $33,800

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