A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling Price |
$102 |
|
Units in beginning inventory |
0 |
|
Units produced |
8,700 |
|
Units sold |
8,300 |
|
Unit in ending inventory |
400 |
|
Variable costs per unit: |
|
|
Direct materials |
$29 |
|
Direct labor |
$31 |
|
Variable manufacturing overhead |
$2 |
|
Variable selling and administrative |
$6 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$269,700 |
|
Fixed selling and administrative |
$8,300 |
The total contribution margin for the month under the variable costing approach is:
A) $282,200
B) $74,700
C) $332,000
D) $12,500