Elgin Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price |
$126 |
|
Units in beginning inventory |
0 |
|
Units produced |
1,400 |
|
Units sold |
1,000 |
|
Units in ending inventory . |
400 |
|
Variable costs per unit: |
|
|
Direct materials |
$27 |
|
Direct labor |
$49 |
|
Variable manufacturing overhead |
$6 |
|
Variable selling and administrative |
$9 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$28,000 |
|
Fixed selling and administrative |
$3,000 |
What is the net operating income for the month under variable costing?
A) $8,000
B) $4,000
C) $12,000
D) ($28,800)