A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
|
Selling Price |
$122 |
|
Units in beginning inventory |
0 |
|
Units produced |
8,600 |
|
Units sold |
8,500 |
|
Unit in ending inventory |
100 |
|
Variable costs per unit: |
|
|
Direct materials |
$34 |
|
Direct labor |
$37 |
|
Variable manufacturing overhead |
$7 |
|
Variable selling and administrative |
$4 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$292,400 |
|
Fixed selling and administrative |
$34,000 |
What is the net operating income for the month under absorption costing?
A) $17,000
B) $3,400
C) $5,800
D) $13,600