UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

159. Correct answer c. Plunkett’s product costs were $656,100 and the period costs were

$493,000, as shown below.

Product Costs Period Costs

Direct material $ 56,000 Variable selling $108,400

Direct labor 179,100 Fixed selling 121,000

Variable overhead 154,000 Administrative 235,900

Fixed overhead 267,000 Fire loss 27,700

Total product costs $656,100 Total period costs $493,000