A Manufacturing Company That Produces a Single Product Has Provided

question 188

Multiple Choice

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the total period cost for the month under absorption costing?

• A)$50, 000
• B)$7, 200
• C)$39, 600
• D)$10, 400

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Definitions:

Variable Factory Overhead Controllable Variance

The difference between the actual and budgeted variable overhead costs that management has the ability to influence or control.

Actual Hours

The real number of hours worked or spent on a particular activity or project, as opposed to planned or estimated hours.

Standard Hours

The preset amount of time expected to complete a task or work process in an efficient manner.

Units Produced

This refers to the total number of complete units manufactured during a specific period by a company.