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 Selling price Units in beginning inventory Units produced Units sold $163 1910 1.555 355 Units in ending inventory Variable costs per unit Direct meterials Direct lebor Variable menufecturing overhead Verieble selling and edministretive $51 $64 $13 $20 Fied costs Fixed menufecturing overheed Fixed selling and edministretive $11.600 $31.800 What is the total pertod cost for the month under variable costing o $62.900 o $74,500 $43.400 O 51600

Explanation / Answer

Total Period Cost for the Month inder Variable Costing = Fixed Manufacturing Overheads + Fixed Selling and Administrative

= $ 11,600 + $ 31,800

= $ 43,400

Under variable costing only variable cost are taken for the valuation of the stock and all fixed cost is trated as period cost under variable costing.

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