1.

Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price$151 Units in beginning inventory 0 Units produced 2,500 Units sold 2,050 Units in ending inventory 450

Variable costs per unit: Direct materials$51Direct labor$24Variable manufacturing overhead$5Variable selling and administrative expense$7Fixed costs: Fixed manufacturing overhead$57,500Fixed selling and administrative expense$10,250

The total gross margin for the month under the absorption costing approach is:

Multiple Choice

$67,750

$98,400

$84,050

$172,200