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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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