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-   -   Expensed Period Costs under Variable Costing (https://www.askmehelpdesk.com/showthread.php?t=817447)

  • Oct 24, 2015, 11:35 AM
    pauldata
    Expensed Period Costs under Variable Costing
    I'm not sure how to expense period costs for the month under variable costing.

    I know that under variable costing, period costs would be: fixed manufacturing overhead + variable selling and administration + fixed selling and administration.

    but how can I calculate a months worth of expense with the data I've been given?

    Units:
    Beginning Invetory: 0
    Sold: 800
    Produced: 1,100
    Ending Inventory: 300

    Variable Costs per Unit:
    Variable Selling and Administration: $48

    Fixed Costs:
    Fixed Manufacturing Overhead: $39,600
    Fixed Selling and Administration: $7,200


    what I've come up with so far is that you take units sold and multiply it by variable selling and administration plus all the fixed cost. Is that right?

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