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A manufacturing company that produces a single product has provided the following
data concerning its most recent month of operations:
Selling price ............................................... $103
Units in beginning inventory ..................... 0
Units produced .......................................... 1,700
Units sold ................................................... 1,600
Units in ending inventory .......................... 100
Variable costs per unit:
Direct materials ...................................... $46
Direct labor ............................................. $14
Variable manufacturing overhead .......... $4
Variable selling and administrative ........ $9
Fixed costs:
Fixed manufacturing overhead ............... $11,900
Fixed selling and administrative ............ $22,400
What is the net operating income for the month under variable costing?
A) $7,300
B) $14,400
C) $13,700
D) $700
And how
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