A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling Price |
$85 |
|
Units in beginning inventory |
0 |
|
Units produced |
2,900 |
|
Units sold |
2,700 |
|
Unit in ending inventory |
200 |
|
Variable costs per unit: |
|
|
Direct materials |
$22 |
|
Direct labor |
$13 |
|
Variable manufacturing overhead |
$3 |
|
Variable selling and administrative |
$5 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$46,400 |
|
Fixed selling and administrative |
$51,300 |
What is the net operating income for the month under variable costing?
A) $8,100
B) $15,700
C) $18,900
D) $3,200