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23 May, 04:34

Delvin Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $199 Units in beginning inventory 0 Units produced 1,930 Units sold 1,565 Units in ending inventory 365 Variable costs per unit: Direct materials $53 Direct labor $68 Variable manufacturing overhead $15 Variable selling and administrative $22 Fixed costs: Fixed manufacturing overhead $9,450 Fixed selling and administrative $35,200 What is the total period cost for the month under variable costing?

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  1. 23 May, 06:13
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    Total Perdiod Cost 44,650

    Explanation:

    A period cost cannot be capitalized into inventory

    Under Variable costing, the fixed cost are period cost.

    So total period cost = total fixed cost

    Fixed manufacturing overhead $9,450

    Fixed selling and administrative $35,200

    Total Fixed Cost 44,650
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