A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling Price ………………………………… $139
Units in beginning inventory …………….. 0
Units produced …………………………….. 6700
Units sold …………………………………… 6400
Units in ending inventory …………………. 300
Variable costs per unit:
Direct materials …………………………….. $43
Direct Labor …………………………………. $35
Variable manufacturing overhead ……………$5
Variable selling and administrative ………….. $6
Fixed costs:
Fixed manufacturing overhead …………….. $227,800
Fixed selling and administrative ………………. 83,200
What is the net operating income for the month under absorption costing?
a. $(15,900)
b. $19,200
c. $10,200
d. $9,000