The quarterly income statement for Largent is as follows: $\begin{array}{lr}\text { Sales }&&\$1,600\
\text { Less variable expenses: }\
\text { Direct materials } & \$ 280 \
\text { Direct labour } & 300 \
\text { Manufacturing overhead } & 60 \
\text { Administrative expenses } & 30 \
\text { Selling expenses } & 70&740 \
\text { Contribution margin }&&860\
\text { Less fixed expenses: } & \
\quad \text { Manufacturing overhead } & \$ 180 \
\text { Administrative expenses } & 440 \
\text { Selling expenses } & 100 &720,000\
\text { Income before taxes }&&\$140
\end{array}$ What total amount represents the period costs?
A) $60
B) $640
C) $600
D) $720

Question

Quizplus · Accepted Answer

Period costs are fixed costs that do not vary with the level of production or sales. In this case, the period costs are the fixed manufacturing overhead, administrative expenses, and selling expenses, which total $640 ($180 + $440 + $100).

The Quarterly Income Statement for Largent Is as Follows What Total Amount Represents the Period Costs? A) $60 B)

The Quarterly Income Statement for Largent Is as Follows What Total Amount Represents the Period Costs?
A) $60
B)