Posted on by Judy

Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $124 Units in beginning inventory 0 Units produced 1,200 Units sold 800 Units in ending inventory 400 Variable costs per unit: Direct materials $40 Direct labor $29 Variable manufacturing overhead $3 Variable selling and administrative $5 Fixed costs: Fixed manufacturing overhead $8,400 Fixed selling and administrative $13,600 What is the total period cost for the month under the variable costing? $8400 $22,000 $26,000 $17,600

period cost
= variable selling & administrative cost + fixed manufacturing o/h + fixed selling & administrative cost
= ($5*800) + $8,400 + $13,600
= $26,000
correct option is 26000
working notes
variable selling & adm cost is 5 per unit of good sold. in the question units sold given is 800 units. so total variable cost become 5 x 800 = 4000
in the period cost fixed manufacturing and fixed selling cost is included because it occurs after a particular period of time
 
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