Direct labor $420,000 Direct materials 210,000 Variable overhead 205,000 Fixed overhead 355,000 Variable SG&A expenses Fixed SG&A expenses 150,000 195,000 Year 3 period costs for Drexler, under both the absorption and variable cost methods, will be Absorption Cost Method Variable Cost Method a. $345,000 $700,000 b. $345,000 $905,000 c. $550,000 d. $550,000 $700,000 $905,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...
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The following information relates to Drexler Inc.’s Year 3 nancials:

Direct labor
$420,000
Direct materials
210,000
Variable overhead
205,000
Fixed overhead
355,000
Variable SG&A expenses
Fixed SG&A expenses
150,000
195,000
Year 3 period costs for Drexler, under both the absorption and variable cost methods, will be
Absorption Cost Method
Variable Cost Method
a. $345,000
$700,000
b. $345,000
$905,000
c. $550,000
d. $550,000
$700,000
$905,000
Transcribed Image Text:Direct labor $420,000 Direct materials 210,000 Variable overhead 205,000 Fixed overhead 355,000 Variable SG&A expenses Fixed SG&A expenses 150,000 195,000 Year 3 period costs for Drexler, under both the absorption and variable cost methods, will be Absorption Cost Method Variable Cost Method a. $345,000 $700,000 b. $345,000 $905,000 c. $550,000 d. $550,000 $700,000 $905,000
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