Gaines Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$74 |
|
Units in beginning inventory |
0 |
|
Units produced |
8,800 |
|
Units sold |
8,600 |
|
Units in ending inventory . |
200 |
|
Variable costs per unit: |
|
|
Direct materials |
$12 |
|
Direct labor |
$32 |
|
Variable manufacturing overhead |
$2 |
|
Variable selling and administrative |
$6 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$176,000 |
|
Fixed selling and administrative |
$8,600 |
The total contribution margin for the month under the variable costing approach is:
A) $13,200
B) $240,800
C) $68,800
D) $189,200