A manufacturing company that produces a single product has p

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price -------------------------------------- $135

Units in beginning inventory ----------------- 0

Units produced ---------------------------------- 5,000

Units sold ----------------------------------------- 4,900

Units in ending inventory ---------------------    100

Variable costs per unit:

   Direct materials ------------------------------- $33

   Direct labor ------------------------------------  $34

   Variable manufacturing overhead -------   $4

   Variable selling and administrative ------   $6

Fixed costs:

   Fixed manufacturing overhead ----------- $185,000

   Fixed selling and administrative ----------    88,200

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

$185,000

$117,600

$273,200

$302,600

	a.	$185,000
	b.	$117,600
	c.	$273,200
	d.	$302,600

Solution

Total period cost for the month under variable costing = 185000+88200+(4900*6)= $302600 Option D is correct