$83,000 $42,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative $20,600 32,200 $52,800 $14,800 23,600 $38,400 $ 5,400 expense Fixed administrative 27,800 expense Total administrative $33,200 expense
$83,000 $42,000 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Variable selling expense Fixed selling expense Total selling expense Variable administrative $20,600 32,200 $52,800 $14,800 23,600 $38,400 $ 5,400 expense Fixed administrative 27,800 expense Total administrative $33,200 expense
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Step 1: Product and Period Cost
Product cost: Product cost of a product refers to the manufacturing cost of producing one unit of a product. It includes, direct material cost, direct labor cost, and factory or manufacturing overhead.
Period cost: Period costs are the costs which are not allocable to a particular unit of product and hence to be charged off against the revenue at the end of a period. It includes all the general selling and administrative overhead.
Total product cost: $177,800
Total period cost: $71,600
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