The total fixed manufacturing overhead costs of Cay Company are $100,000,and the total variable selling costs are $80,000.Under variable costing,how should these costs be classified?
$\begin{array}{|l|l|}
\hline \text { Period Costs } & \text { Product Costs } \
\hline \text { A) } \$ 0 & \$ 180,000 \
\hline \text { B) } 80,000 & 100,000 \
\hline \text { C) } 100,000 & 80,000 \
\hline \text { D) } 180,000 & 0 \
\hline
\end{array}$
A) Option A
B) Option B
C) Option C
D) Option D

Question

Quizplus · Accepted Answer

Under variable costing, all fixed manufacturing overhead costs are treated as period costs, and variable selling costs are also period costs. Therefore, both costs are classified as period costs, totaling $180,000.

The Total Fixed Manufacturing Overhead Costs of Cay Company Are