A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling Price |
$85 |
|
Units in beginning inventory |
0 |
|
Units produced |
5,000 |
|
Units sold |
4,600 |
|
Units in ending inventory |
400 |
|
Variable costs per unit: |
|
|
Direct materials |
$19 |
|
Direct labor |
$15 |
|
Variable manufacturing overhead |
$2 |
|
Variable selling and administrative |
$10 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$110,000 |
|
Fixed selling and administrative |
$69,000 |
What is the total period cost for the month under the variable costing approach?
A) $179,000
B) $110,000
C) $115,000
D) $225,000