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 absorption costing?
A) $48,000
B) $275,100
C) $86,400
D) $188,700

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 absorption costing?
A) $48,000 
B) $275,100 
C) $86,400 
D) $188,700

Quizplus · Accepted Answer

The total period cost for the month under absorption costing includes both fixed and variable costs such as selling expenses, administrative expenses, and depreciation. Based on the given data, the total period cost would be:
Fixed selling and administrative expenses: $36,000 + $25,000 = $61,000
Variable selling and administrative expenses: $6,000 + $10,000 = $16,000
Depreciation: $9,400
Total period cost = $61,000 + $16,000 + $9,400 = $86,400. Therefore, option C is the correct choice.

A Manufacturing Company That Produces a Single Product Has Provided