A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the total period cost for the month under absorption costing?
A)$48,000
B)$275,100
C)$86,400
D)$188,700

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:  What is the total period cost for the month under absorption costing?
A)$48,000 
B)$275,100 
C)$86,400 
D)$188,700

Quizplus · Accepted Answer

Total variable selling and administrative cost = $8 F1F1F1S1F1F1F10 4,800 = $38,400
Period cost = Variable selling and administrative cost + Fixed selling and administrative cost
= $38,400 + $48,000
= $86,400

A Manufacturing Company That Produces a Single Product Has Provided