2-19

Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price S92 Units in beginning inventory 0 Units produced 8,700 Units sold 8,300 Units in ending inventory 400 Variable costs per unit: Direct materials $13 Direct labor $55 Variable manufacturing overhead $1 Variable selling and administrative $5 Fixed costs: Fixed manufacturing overhead $130,500 Fixed selling and administrative $8,300 What is the net operating income for the month under absorption costing? $(17,000) $16,600 $6,000 $10,600