Problem:
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price $100
Units in beginning inventory $0
Units produced $2,400
Units sold $2,100
Units in ending inventory $300
Variable cost per unit:
Direct materials $31
Direct labor $11
Variable manufacturing overhead $1
Variable selling and administrative $8
Fixed cost:
Fixed manufacturing overhead $79,200
Fixed selling and administrative $8,400
What is the total period cost for the month under the absorption costing approach?
a) $79,200
b) $8,400
c) $104,400
d) $25,200