Question

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $131 Units in beginning inventory 50 Units produced 2,110 Units sold 1,110 Units in ending inventory 1,050 Variable costs per unit: Direct materials $ 45 Direct labor $ 33 Variable manufacturing overhead $ 9 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $18,990 Fixed selling and administrative expense $22,200 What is the total period cost for the month under variable costing

Answer 1

Period costs= $48,960

Step-by-step explanation:

Giving the following information:

Units sold 1,110

Variable selling and administrative expense $ 7

Fixed manufacturing overhead $18,990

Fixed selling and administrative expense $22,200

Under the variable costing method, the period costs include the fixed manufacturing overhead, selling, and administrative costs both fixed and variable.

Period costs= (7*1,110) + 18,990 + 22,200

Period costs= $48,960