Abbitt Company, which has only one product, has provided the following data concerning its
most recent month of operations:
|
Selling price |
$142 |
|
Units in beginning inventory |
0 |
|
Units produced |
2,500 |
|
Units sold |
2,300 |
|
Units in ending inventory |
200 |
|
Variable costs per unit: |
|
|
Direct materials |
$22 |
|
Direct labor |
$57 |
|
Variable manufacturing overhead |
$1 |
|
Variable selling and administrative |
$6 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$82,500 |
|
Fixed selling and administrative |
$41,400 |
What is the net operating income for the month under variable costing?
A) $4,900
B) $11,500
C) $6,600
D) ($11,100)