Question:
Deac Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price
|
$159
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
7,800
|
|
Units sold
|
7,700
|
|
Units in ending inventory .
|
100
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$47
|
|
Direct labor
|
$50
|
|
Variable manufacturing overhead
|
$2
|
|
Variable selling and administrative
|
$9
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$304,200
|
|
Fixed selling and administrative
|
$84,700
|
What is the total period cost for the month under the variable costing approach?
A) $458,200
B) $388,900
C) $304,200
D) $154,000