A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling Price |
$103 |
|
Units in beginning inventory |
0 |
|
Units produced |
1,700 |
|
Units sold |
1,400 |
|
Unit in ending inventory |
300 |
|
Variable costs per unit: |
|
|
Direct materials |
$39 |
|
Direct labor |
$32 |
|
Variable manufacturing overhead |
$6 |
|
Variable selling and administrative |
$5 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$6,800 |
|
Fixed selling and administrative |
$8,400 |
What is the net operating income for the month under absorption costing?
A) $14,200
B) ($8,900)
C) $1,200
D) $15,400