A manufacturing company that produces a single product has provided the followin

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $121 ,.. Units in beginning inventory Units produced. Units sold Units in ending inventory 0 6,000 5,600 400 Variable costs per unit Direct materials. Direct labor Variable manufacturing overhead Variable selling and administrative expense $38 $53 $3 $11 Fixed costs: Fixed manufacturing overhead. Fixed selling and administrative expense $60,000 $28,000 28. What is the total period cost for the month under variable costing? A) $149,600 B) $60,000 C) $88,000 D) $89,600

Explanation / Answer

Total variable selling and administrative expense=(11*5600)=$61600

Total period cost=Total variable selling and administrative expense+Fixed manufacturing overhead+Fixed selling and adminstrative expense

=(61600+60000+28000)

=$149600

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