A manufacturing company that produces a single product has provided the followin
ID: 2653485 • Letter: A
Question
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price $166
Units in beginning inventory 100
Units produced 9,300
Units sold 8,800
Units in ending inventory 600
Variable cost per unit:
Direct materials $48
Direct labor $42
Variable manufacturing overhead $12
Variable selling and administrative $9
Fixed costs:
Fixed manufacturing overhead $297,600
Fixed selling and administrative $176,000
What is the total period cost for the month under variable costing?
$297,600
$255,200
$473,600
$552,800
.
Explanation / Answer
Total period cost:
Fixed manufacturing cost 297,600
Fixed selling cost 176,000
Total period cost 473,600
correct option is "C" - $ 473,600
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