A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling Price |
$86 |
|
Units in beginning inventory |
0 |
|
Units produced |
3,500 |
|
Units sold |
3,400 |
|
Unit in ending inventory |
100 |
|
Variable costs per unit: |
|
|
Direct materials |
$37 |
|
Direct labor |
$15 |
|
Variable manufacturing overhead |
$5 |
|
Variable selling and administrative |
$10 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$24,500 |
|
Fixed selling and administrative |
$27,200 |
The total gross margin for the month under the absorption costing approach is:
A) $81,200
B) $74,800
C) $64,600
D) $13,600