Hatfield Corporation which has only one product has provided

Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

What is the total period cost for the month under the variable costing?

$8400

$22,000

$26,000

$17,600

Solution

period cost
= variable selling & administrative cost + fixed manufacturing o/h + fixed selling & administrative cost
= ($5*800) + $8,400 + $13,600
= $26,000

correct option is 26000

working notes
variable selling & adm cost is 5 per unit of good sold. in the question units sold given is 800 units. so total variable cost become 5 x 800 = 4000

in the period cost fixed manufacturing and fixed selling cost is included because it occurs after a particular period of time