Question

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 196 Units in beginning inventory 100 Units produced 1,680 Units sold 900 Units in ending inventory 880 Variable costs per unit: Direct materials $ 94 Direct labor $ 35 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 8 Fixed costs: Fixed manufacturing overhead $ 20,160 Fixed selling and administrative expense $ 20,700 What is the total period cost for the month under variable costing?

Answer 1

Solution:

Total period cost under variable costing

$48,060

Calculations:

Statement for calculating the total period cost under variable costing.

Details	Amount($)
Fixed manufacturing overhead	$20,160
Fixed selling and administrative expense	$20,700
Variable selling and administrative expense ($8 * 900)	$7,200
Total period cost under variable costing	$48,060

Note:

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