Blades Company, which has only one product, has provided the following data conc

Question

Blades Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price (per unit) $100 Units in beginning inventory Units produced Units sold Units in ending inventory 0 5,700 5,400 300 Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling & administration $25 $40 $7 $5 Fixed costs Fixed manufacturing overhead Fixed selling & admin What is the total period cost for the month under the variable costing approach? O a. $190,000 o b. $52,000 $165,000 $25,000 C.$217,000 O d. $165,000

Explanation / Answer

Under variable costing approach period cost equals to fixed manufacturing overhead and fixed selling and administration so total period cost equals to $1,90,000 ($1,65,000+$25,000)

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