Haas Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$99 |
|
Units in beginning inventory |
0 |
|
Units produced |
2,400 |
|
Units sold |
2,100 |
|
Units in ending inventory |
300 |
|
Variable costs per unit: |
|
|
Direct materials |
$12 |
|
Direct labor |
$57 |
|
Variable manufacturing overhead |
$7 |
|
Variable selling and administrative |
$10 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$19,200 |
|
Fixed selling and administrative |
$2,100 |
The total contribution margin for the month under the variable costing approach is:
A) $48,300
B) $27,300
C) $8,100
D) $31,500