Question

A company has the following cost information: Units produced and sold 10,000 Direct materials $75,000 Direct labor hours per unit 1.0 Direct labor rate $10 per hour Variable manufacturing overhead 40% of direct labor Fixed manufacturing overhead $25,000 Variable selling and administrative expenses $6 per unit Fixed selling and administrative expenses $20,000 Calculate total period costs using full costing.

Answer 1

The total period cost is $105000.

Step-by-step explanation:

Total period costs (TPC) = Fixed manufacturing overhead (FMO) + (Variable selling and administrative expenses × units sold) + Fixed selling and administrative expenses.

Now insert all the values in the above formula.

Total period costs = $25,000 + ($6 × 10,000) + $20,000

Total period costs = $25,000 + $60,000 + $20,000

therefore, the Total period costs = $105,000