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Dunn Company produced 500 units during its first month of operations and reported the following costs: Direct labor $40,000 DDunn Company produced 500 units during its first month of operations and reported the following costs: Direct labor $40,000 D

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Answer #1

Period costs = Fixed administrative expense + Fixed selling expense + Variable administrative expense + Variable selling expense

= $62,000 + $44,000 + $12,000 + $13,000

= $131,000

The answer is Option c.

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Total manufacturing costs = Direct labor + Direct materials + Fixed manufacturing overhead + Variable manufacturing overhead

= $40,000 + $65,000 + $30,000 + $15,000

= $150,000

The answer is Option d.

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