Clifton Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$63 |
|
Units in beginning inventory |
0 |
|
Units produced |
1,500 |
|
Units sold |
1,100 |
|
Units in ending inventory . |
400 |
|
Variable costs per unit: |
|
|
Direct materials |
$14 |
|
Direct labor |
$15 |
|
Variable manufacturing overhead |
$1 |
|
Variable selling and administrative |
$7 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$16,500 |
|
Fixed selling and administrative |
$5,500 |
The total gross margin for the month under the absorption costing approach is:
A) $28,600
B) $24,200
C) $40,600
D) $11,000