Swift Co. produces footballs. It incurred the following costs this year: What are the total product costs for the company under variable costing?Direct materials$35,000Direct labor31,000Fixed manufacturing overhead22,000Variable manufacturing overhead38,000Fixed selling and administrative expenses23,000Variable selling and administrative expenses14,000 Solution The total product cost under variable costing is $104,000 ( Direct materials $ 35,000 + Direct Labor $ 31,000 + Variable Manufacturing Overhead $ 38,000).
Swift Co. produces footballs. It incurred the following costs this year: What are the total product costs for the company under variable costing?Direct materials$35,000Direct labor31,000Fixed manufacturing overhead22,000Variable manufacturing overhead38,000Fixed selling and administrative expenses23,000Variable selling and administrative expenses14,000 Solution The total product cost under variable costing is $104,000 ( Direct materials $ 35,000 + Direct Labor $ 31,000 + Variable Manufacturing Overhead $ 38,000).