Answered

Discover new knowledge and insights with IDNLearn.com's extensive Q&A database. Receive prompt and accurate responses to your questions from our community of knowledgeable professionals ready to assist you at any time.

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $182
Units in beginning inventory 50
Units produced 2,140
Units sold 880Units in ending inventory 1,310
Variable costs per unit:
Direct materials $80
Direct labor $32
Variable manufacturing overhead $9
Variable selling and administrative expense $15
Fixed costs:
Fixed manufacturing overhead $25,680
Fixed selling and administrative expense $21,120
What is the total period cost for the month under variable costing?

Sagot :

Answer:

Total period cost under variable costing $60,000

Explanation:

The computation of the total period cost under variable costing is shown below:

Variable selling and administrative expenses (880 units × $15) $13,200

Add: Fixed selling and administrative expenses $21,120

Add: Fixed manufacturing overhead $25,680

Total period cost under variable costing $60,000

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Thanks for visiting IDNLearn.com. We’re dedicated to providing clear answers, so visit us again for more helpful information.