A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the total period cost for the month under variable costing?
A)$185,000
B)$117,600
C)$273,200
D)$302,600

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:  What is the total period cost for the month under variable costing?
A)$185,000 
B)$117,600 
C)$273,200 
D)$302,600

Quizplus · Accepted Answer

The total period variable costs can be calculated by adding all the variable costs for the month, which are as follows:
Direct materials: $290,000
Direct labor: $127,000
Variable factory overhead: $105,000
Variable selling and administrative expenses: $15,600

Total period variable costs = $290,000 + $127,000 + $105,000 + $15,600 = $537,600

Therefore, the total period cost for the month under variable costing is $537,600. The correct answer is D.

A Manufacturing Company That Produces a Single Product Has Provided