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3 September, 17:54

Deboer Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $179 Units in beginning inventory 100 Units produced 1,250 Units sold 1,010 Units in ending inventory 340 Variable costs per unit: Direct materials $66 Direct labor $35 Variable manufacturing overhead $7 Variable selling and administrative $14 Fixed costs: Fixed manufacturing overhead $16,250 Fixed selling and administrative $22,220 What is the total period cost for the month under the variable costing approach? $36,360

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  1. 3 September, 21:19
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    The correct answer is $52,610.

    Explanation:

    According to the scenario, the computation of the given data are as follows:

    We can calculate the total period cost for the month by using following formula:

    Total period cost = Total variable Selling and Administrative + Fixed Manufacturing OH + Fixed Selling and Administrative

    Where, Total variable Selling and administrative = Variable selling and administrative per unit * Total Units sold

    = $14 * 1,010 = $14,140

    So, by putting the value in the formula, we get

    Total period cost = $14,140 + $16,250 + $22,220

    = $52,610
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