Question 8

Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price	$	90
Units in beginning inventory		0
Units produced		3,400
Units sold		3,000
Units in ending inventory		400

Variable costs per unit:
Direct materials	$	21
Direct labor	$	38
Variable manufacturing overhead	$	6
Variable selling and administrative expense	$	4
Fixed costs:
Fixed manufacturing overhead	$	54,400
Fixed selling and administrative expense	$	3,000

What is the total period cost for the month under the absorption costing?

		$54,400
		$3,000
		$69,400
		$15,000