Hadley Corporation, which has only one 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) $75,500
B) $43,200
C) $55,700
D) $32,300

Question

Hadley Corporation, which has only one 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) $75,500
B) $43,200
C) $55,700
D) $32,300

Kychee Butler · Accepted Answer

Final Answer : A, Explanation :  Under variable costing, only variable costs are included in product costs and fixed costs are treated as period costs. From the given data, total variable costs are $257,400 (direct materials $70,200 + direct labor $111,600 + variable manufacturing overhead $75,600) and total fixed costs are $75,500 (fixed manufacturing overhead $39,500 + fixed selling and administrative expenses $36,000). Therefore, total period cost for the month under variable costing is $75,500.

Hadley Corporation, which has only one 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) $75,500
B) $43,200
C) $55,700
D) $32,300

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Learning Objectives

Learning Objectives

Related questions

Hadley Corporation, which has only one 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) $75,500B) $43,200C) $55,700D) $32,300

Definitions

Learning Objectives

Learning Objectives

Related questions

Hadley Corporation, which has only one 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) $75,500
B) $43,200
C) $55,700
D) $32,300