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)$124,200
B)$123,200
C)$168,200
D)$45,000

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)$124,200 
B)$123,200 
C)$168,200 
D)$45,000

Quizplus · Accepted Answer

Under variable costing, period costs are expensed in the period they are incurred rather than being allocated to the cost of goods sold. The total period cost for the month is calculated as follows: 
Fixed manufacturing overhead costs = $100,000 
Variable selling and administrative expenses = $68,200 
Total period cost under variable costing = $100,000 + $68,200 = $168,200. 
Therefore, the correct answer is option C.

A Manufacturing Company That Produces a Single Product Has Provided