AC204 Chap 5 Practice Exam.doc [Compatibility Model- Word References Mailings Re

Question

AC204 Chap 5 Practice Exam.doc [Compatibility Model- Word References Mailings Review View Tell me what you want to d A A Aa- x', ry.A- ..a . L. Emphasis Heading 1 Normal Strong Subtitle Title Styles 6. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: ing price. $78 Units in beginning in Unts produced Unuts sold Unts in ending inventory 5,300 4,900 400 Varable costs per unst Direct materials Direct labor vanable manufacturing overhead Variable selling and administrative $31 $14 $2 $5 . Fixed costs Fixed manufacturing overhead Fixed selling and administrative $68,900 $5 What is the total period cost for the month under the absorption costing approach? A. $152.200 B. $83,300 C. $68,900 D. $58,800 + FS F7

Explanation / Answer

Option B is correct=$83,300

Explanation:

Total variable selling and administrative cost=$5×4900 units

=$24,500

Period cost=variable selling and administrative cost+fixed selling and administrative cost

=$24,500+$58,800

=$83,300

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