A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 150 Units in beginning inventory 150 Units produced 7,300 Units sold 6,900 Units in ending inventory 550 Variable cost per unit: Direct materials $ 48 Direct labor $ 43 Variable manufacturing overhead $ 8 Variable selling and administrative $ 4 Fixed costs: Fixed manufacturing overhead $ 2,33,600 Fixed selling and administrative $82,800 What is the total period cost for the month under variable costing? A. $233,600 B. $110,400 C. $316,400 D. $344,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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A manufacturing company that produces a single product has provided
the following data concerning its most recent month of operations:
Selling price
$ 150
Units in beginning inventory
150
Units produced
7,300
Units sold
6,900
Units in ending inventory
550
Variable cost per unit:
Direct materials
$ 48
Direct labor
$ 43
Variable manufacturing overhead
$ 8
Variable selling and administrative
$ 4
Fixed costs:
Fixed manufacturing overhead
$ 2,33,600
Fixed selling and administrative
$82,800
What is the total period cost for the month under variable costing?
A. $233,600
B. $110,400
C. $316,400
D. $344,000
Transcribed Image Text:A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 150 Units in beginning inventory 150 Units produced 7,300 Units sold 6,900 Units in ending inventory 550 Variable cost per unit: Direct materials $ 48 Direct labor $ 43 Variable manufacturing overhead $ 8 Variable selling and administrative $ 4 Fixed costs: Fixed manufacturing overhead $ 2,33,600 Fixed selling and administrative $82,800 What is the total period cost for the month under variable costing? A. $233,600 B. $110,400 C. $316,400 D. $344,000
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