Abbey Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$129
|
|
Units in beginning inventory |
0 |
|
Units produced |
6,300 |
|
Units sold |
6,100 |
|
Units in ending inventory |
200 |
|
Variable costs per unit: |
|
|
Direct materials |
$32 |
|
Direct labor |
$50 |
|
Variable manufacturing overhead |
$5 |
|
Variable selling and administrative |
$11 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$88,200 |
|
Fixed selling and administrative |
$97,600 |
The total contribution margin for the month under the variable costing approach is:
A) $170,800
B) $256,200
C) $100,900
D) $189,100