Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 182 Units in beginning inventory 0 Units produced 13,900 Units sold 13,000 Units in ending inventory 900 Variable costs per unit: Direct materials $ 54 Direct labor $ 45 Variable manufacturing overhead $ 16 Variable selling and administrative expense $ 15 Fixed costs: Fixed manufacturing overhead $500,400 Fixed selling and administrative expense $169,000 What is the total period cost for the month under variable costing

Answer 1

$864,400

Step-by-step explanation:

The computation of the total period cost for the month under variable costing is shown below:

= Variable selling & admin expense + fixed manufacturing overhead + fixed selling and admin expense

= ($15 × 13,000 units) + $500,400 + $169,000

= $195,000 + $500,400 + $169,000

= $864,400