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Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $182
Units in beginning inventory 50
Units produced 2,140
Units sold 880Units in ending inventory 1,310
Variable costs per unit:
Direct materials $80
Direct labor $32
Variable manufacturing overhead $9
Variable selling and administrative expense $15
Fixed costs:
Fixed manufacturing overhead $25,680
Fixed selling and administrative expense $21,120
What is the total period cost for the month under variable costing?

Sagot :

Answer:

Total period cost under variable costing $60,000

Explanation:

The computation of the total period cost under variable costing is shown below:

Variable selling and administrative expenses (880 units × $15) $13,200

Add: Fixed selling and administrative expenses $21,120

Add: Fixed manufacturing overhead $25,680

Total period cost under variable costing $60,000

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