Illa Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$131 |
|
Units in beginning inventory |
0 |
|
Units produced |
5,700 |
|
Units sold |
5,400 |
|
Units in ending inventory |
300 |
|
Variable costs per unit: |
|
|
Direct materials |
$46 |
|
Direct labor |
$25 |
|
Variable manufacturing overhead |
$6 |
|
Variable selling and administrative |
$7 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$193,800 |
|
Fixed selling and administrative |
$43,200 |
What is the net operating income for the month under variable costing?
A) $10,200
B) $27,000
C) ($6,300)
D) $16,800