A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling Price |
$103 |
|
Units in beginning inventory |
0 |
|
Units produced |
1,700 |
|
Units sold |
1,600 |
|
Unit in ending inventory |
100 |
|
Variable costs per unit: |
|
|
Direct materials |
$46 |
|
Direct labor |
$14 |
|
Variable manufacturing overhead |
$4 |
|
Variable selling and administrative |
$9 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$11,900 |
|
Fixed selling and administrative |
$22,400 |
What is the net operating income for the month under variable costing?
A) $7,300
B) $14,400
C) $13,700
D) $700