Feasal Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$108 |
|
Units in beginning inventory |
0 |
|
Units produced |
7,700 |
|
Units sold |
7,500 |
|
Units in ending inventory |
200 |
|
Variable costs per unit: |
|
|
Direct materials |
$26 |
|
Direct labor |
$38 |
|
Variable manufacturing overhead |
$3 |
|
Variable selling and administrative |
$4 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$184,800 |
|
Fixed selling and administrative |
$90,000 |
What is the net operating income for the month under absorption costing?
A) $2,700
B) $7,500
C) $4,800
D) ($10,700)