Davison Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price$95 Units in beginning inventory 0Units produced 5,000Units sold 4,900Units in ending inventory 100 Variable costs per unit: Direct materials$26Direct labor$40Variable manufacturing overhead$1Variable selling and administrative expense$4Fixed costs: Fixed manufacturing overhead$40,000Fixed selling and administrative expense$73,500 What is the total period cost for the month under the absorption costing?
A. $73,500
B. $133,100
C. $93,100
D. $40,000
Answer: C
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O'Reilly, Inc has prepared its third quarter budget and provided the following data
Jul Aug Sep Cash collections $51,000 $39,700 $47,900 Cash payments: Purchases of direct materials 30,000 21,900 17,000 Operating expenses 12,200 8,100 11,300 Capital expenditures 13,400 24,700 0 The cash balance on June 30 is projected to be $4,500. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the amount of principal repayment at the end of September. A) $5,000 B) $10,000 C) $15,000 D) $20,000