In: Accounting
The following information for the next 2 questions Davison Corporation, which has only one product , has provided the following data concerning its most recent month of operations: Selling price 95 ,Units in beginning inventory 0 ,Units produced 5000, Units sold 4,900, Units in ending inventory 100.
Variable costs per unit
Direct materials. 26 ,Direct labor 40 , Variable manufacturing overhead 1, Variable selling and administrative expense 4,
Fixed costs
Fixed manufacturing overhead $40,000, Fixed selling and administrative expense $73,500 What is the total period cost for the month under variable costing? A) S133,100 B) $113,500 C) $40,000 D) $93,100
Calculation of Total period cost for the month under variable costing
Given information in the problem
Variable Selling & Administrative expense = $4
Fixed Selling & Admininstrative Expenses = $73,500
units sold = 4,900
Total Period costs under variable costing = Variable selling & administrative expenses + Fixed Selling & Administrative Expenses
=$4 * 4,900 units + $73,500
=$19,600 + $73,500
=$93,100
option (d) $93,100 is the correct choice
option (d) $93,100 is the correct choice