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

question 111

Multiple Choice

Dearman Company, which has only one product, has provided the following data concerning its most recent month of operations:
-What is the total period cost for the month under the absorption costing approach?

• A) $33,600
• B) $65,100
• C) $129,500
• D) $64,400

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Definitions:

Premium Expense

The cost associated with purchasing an insurance policy or other similar financial products.

Plastic Doll

A plastic doll is a toy modeled in human or humanoid form, made primarily or entirely from plastic materials, intended for children's play.

Estimated Liability

Estimated Liability refers to a potential financial obligation that can be reasonably estimated but its exact value or timing is uncertain.

Warranty Expense

Costs incurred by a company to repair, replace, or compensate for faulty products during the warranty period.