Question

Davison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 95 Units in beginning inventory 0 Units produced 5,000 Units sold 4,900 Units in ending inventory 100 Variable costs per unit: Direct materials $ 26 Direct labor $ 40 Variable manufacturing overhead $ 1 Variable selling and administrative expense $ 4 Fixed costs: Fixed manufacturing overhead $ 40,000 Fixed selling and administrative expense $ 73,500 What is the total period cost for the month under variable costing

Answer 1

Answer:

Total period cost= $133,100

Explanation:

Giving the following information:

Variable selling and administrative expense $4

Fixed costs:

Fixed manufacturing overhead $40,000

Fixed selling and administrative expense $73,500

Units sold 4,900

The period costs are all the costs that are not directly involved in production. In variable costing, the fixed manufacturing overhead is a period cost.

Total variable period cost= 4*4,900= 19,600

Total fixed period cost= 40,000 + 73,500= 113,500

Total period cost= $133,100