Question

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 124 Units in beginning inventory 0 Units produced 1,200 Units sold 800 Units in ending inventory 400 Variable costs per unit: Direct materials $ 40 Direct labor $ 29 Variable manufacturing overhead $ 3 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 8,400 Fixed selling and administrative expense $ 13,600 What is the total period cost for the month under variable costing

Answer 1

$21,600

Step-by-step explanation:

The computations of the total period cost for the month under variable costing is shown below:

Period cost = Variable selling and administrative expense × units sold + Fixed selling and administrative expense

= $5 × 800 units + $13,600

= $4,000 + $13,600

= $21,600

We simply added the variable selling and administrative expense and the Fixed selling and administrative expense so that the period cost could come