Which of the following statements is true of absorption and variable costing methods? a. absorption costing considers fixed manufacturing overhead to be period costs. b. both costing methods consider fixed manufacturing overhead to be product costs. c. both costing methods consider selling and administrative costs to be period costs. d. variable costing considers variable selling and administrative costs to be product costs.

D. Variable costing considers variable selling and administrative costs to be product costs.

Explanation:

Under variable costing method all costs which are variable in nature are treated as product cost.

Therefore, even if it is selling and administrative cost also it is part of product cost under variable costing.

Although under absorption costing only directly related cost that is manufacturing cost is product cost, and no selling and administrative cost is product cost.

Thus, correct of all the above is option D

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lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o