21.

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

Selling price	$105
Units in beginning inventory	0
Units produced	8,500
Units sold	8,600
Units in ending inventory	500
Variable costs per unit:
Direct materials	$22
Direct labor	$39
Variable manufacturing overhead	$3
Variable selling and administrative	$13
Fixed costs:
Fixed manufacturing overhead	$68,000
Fixed selling and administrative	$162,100

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

What is the net operating income for the month under variable costing?

a) $9,900

b) $10,700

c) $3,400

d) $17,100

22.

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

Selling price	$109
Units in beginning inventory	0
Units produced	8,550
Units sold	8,650
Units in ending inventory	550
Variable costs per unit:
Direct materials	$23
Direct labor	$40
Variable manufacturing overhead	$4
Variable selling and administrative	$14
Fixed costs:
Fixed manufacturing overhead	$68,400
Fixed selling and administrative	$162,400

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

What is the net operating income for the month under absorption costing?

a) $10,600

b) $3,500

c) $3,500

d) $18,100