Hatfield Company, Which Has Only One Product, Has Provided the Following

question 81

Multiple Choice

Hatfield Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array} { | l | r | } \hline \text { Selling price } & \$ 123 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 6,400 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 45 \\\hline \text { Direct labour } & \$ 30 \\\hline \text { Variable manufacturing overhead } & \$ 1 \\\hline \text { Variable selling and administrative } & \$ 8 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 140,800\\ \hline \text { Fixed selling and administrative } & \$ 91,500 \\\hline\end{array}$

-What was the total period cost for the month under the variable costing approach?

• A) $140,300.
• B) $140,800.
• C) $232,300.
• D) $281,100.

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Definitions:

Acute Illness

A disease or condition that comes on quickly and can be severe, but is usually short-lived.

Health Care Spending

Financial expenditures related to maintaining, restoring, or enhancing an individual's health.

Physician

A qualified individual who practices medicine, diagnosing and treating diseases, injuries, and other physical and mental impairments.

Hospital

A healthcare institution providing patient treatment with specialized medical and nursing staff and medical equipment.