Hinkle Furniture Company has accumulated the following costs in relation to the production and sales of $7,500$ units during its first year of operations:

Direct materials $$375,000$

Direct labor $$25$ per unit

Variable manufacturing overhead $110\%$ of direct labor

Variable selling and administrative costs $$20$ per unit sold

Fixed manufacturing overhead $$250,000$

Fixed selling and administrative costs $$75,000$

Using full costing, determine Hinkle's total period costs for the year.

 

Answer rating: 100% (QA)

To calculate the total period costs using full costing also known as absorption costing we need to c... View the full answer