Gadzuk Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$123 |
|
Units in beginning inventory |
0 |
|
Units produced |
1,900 |
|
Units sold |
1,600 |
|
Units in ending inventory . |
300 |
|
Variable costs per unit: |
|
|
Direct materials |
$32 |
|
Direct labor |
$55 |
|
Variable manufacturing overhead |
$1 |
|
Variable selling and administrative |
$6 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$43,700 |
|
Fixed selling and administrative |
$1,600 |
What is the total period cost for the month under the variable costing approach?
A) $43,700
B) $54,900
C) $45,300
D) $11,200