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ari File Edit View History Bookmarks Window Help Acct 1090 V0850 2018WI (A) Test: Week #2 Exam #3 This Question: 1 pt Tin Lab Ac m 70f 15 (5 complete) Main Menu The following information was oblained from Fizz, Inc. How much were Fizz\'s period costs? Do Homew Advertising Costs Take a Qui Indirect Labor $10,200 7,000 CEO\'s Salary Direct Labor Indirect Materials Used Direct Materials Used Factory Utilities Factory Janitorial Costs Manufacturing Equipment Depreciation Delivery Vehiclé Depreciation Administrative Wages and Salaries 59,000 6,500 540,000 1,200 2,900 OA $617,240 O B. $12,300 OC. $578,600 D. $576,500 Click to select your answer 11:59pm

Solution

Answer ic C

Period costs are those costs which are not directly related to manufacturing / productio process.

In the given question the following are period costs.

Advertising costs $10,200

CEO\'s salary $540,000

Delivery vehicle depreciation $2,100

Administrative wages & salaries $26,300

Total period costs $578,600