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

ID: 2399513 • 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 -------------------------------------- $135

Units in beginning inventory ----------------- 0

Units produced ---------------------------------- 5,000

Units sold ----------------------------------------- 4,900

Units in ending inventory --------------------- 100

Variable costs per unit:

Direct materials ------------------------------- $33

Direct labor ------------------------------------ $34

Variable manufacturing overhead ------- $4

Variable selling and administrative ------ $6

Fixed costs:

Fixed manufacturing overhead ----------- $185,000

Fixed selling and administrative ---------- 88,200

What is the total period cost for the month under variable costing?

$185,000

$117,600

$273,200

$302,600

$185,000

$117,600

$273,200

$302,600

Total period cost for the month under variable costing = 185000+88200+(4900*6)= $302600 Option D is correct

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