Question

Swift Co. produces footballs. It incurred the following costs this year: Direct materials $35,000 Direct labor 31,000 Fixed manufacturing overhead 22,000 Variable manufacturing overhead 38,000 Fixed selling and administrative expenses 23,000 Variable selling and administrative expenses 14,000 What are the total product costs for the company under variable costing

Answer 1

$104,000

Step-by-step explanation:

With regards to the above information,

the variable costing method incorporates all variable production cost including the direct material , direct labor and variable overhead.

Given that;

Direct material = $35,000

Direct labor = $31,000

Variable manufacturing overhead = $38,000

Therefore,

Total variable cost

= $31,000 + $35,000 + $38,000

= $104,000