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

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $177 Units in beginning inventory 0 Units produced 10,300 Units sold 10,000 Units in ending inventory 300 Variable costs per unit: Direct materials $57 Direct labor $46 Variable manufacturing overhead $16 Variable selling and administrative $10 Fixed costs: Fixed manufacturing overhead $309,000 Fixed selling and administrative $140,000 What is the total period cost for the month under variable costing? $309,000 $449,000 $549,000 $240,000

Explanation / Answer

Period cost is nothing but the sum of all fixed costs

Period cost = Fixed manufacturing overhead $309000 + Fixed selling and administrative overhead $140000

                  = $449000

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