Answer:
Part 1
C. $176,800
Part 2
A. $15.200
Explanation:
Hi, I have attached the full question as image below
Under the Variable Costing System, the Period Cost is the Sum of the Non Manufacturing Costs and Fixed Manufacturing Overheads.
Period Cost = Non Manufacturing Costs + Fixed Manufacturing Overheads
where,
Non Manufacturing Costs = $57,600 + $8 × 6,400 = $108,800
Fixed Manufacturing Overheads = $68,000
therefore,
Period Cost = $176,800
Variable Costing Income Statement
Sales (6,400 x $91) $582,400
Less Cost of Sales
Opening Finished Inventory $0
Add Cost of Goods Manufactured (6,800 x $61) $414,800
Closing Finished Inventory (400 x $61) ($24,400) ($390,400)
Contribution $192,000
Less Period Costs ($176,800)
Net Income $15,200
Workings :
Product Cost = Direct Materials + Direct labor + Variable manufacturing overhead
= $39 + $18 + $4
= $61
