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

Selling price	$116
Units in beginning inventory	0
Units produced	9,000
Units sold	8,600
Units in ending inventory	400
Variable costs per unit:
Direct materials	$19
Direct labor	$61
Variable manufacturing overhead	$7
Variable selling and administrative	$11
Fixed costs:
Fixed manufacturing overhead	$135,000
Fixed selling and administrative	$8,900

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

A. $10,900 B. $(23,900) C. $16,900 D. $6,000

1. A company produces a single product. Variable production costs are $14.0 per unit and variable selling and administrative expenses are $5.0 per unit. Fixed manufacturing overhead totals $56,000 and fixed selling and administration expenses total $60,000. Assuming a beginning inventory of zero, production of 6,000 units and sales of 4,600 units, the dollar value of the ending inventory under variable costing would be:

A. $19,600

B. $32,200

C. $26,600

D. $12,600

2. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price	$137
Units in beginning inventory	0
Units produced	2,850
Units sold	2,700
Units in ending inventory	150
Variable costs per unit:
Direct materials	$44
Direct labor	$21
Variable manufacturing overhead	$12
Variable selling and administrative	$17
Fixed costs:
Fixed manufacturing overhead	$91,200
Fixed selling and administrative expenses	$10,800

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

A. $75,600 B. $18,900 C. $105,300 D. $116,100

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

Selling price	$161
Units in beginning inventory	50
Units produced	1,550
Units sold	1,580
Units in ending inventory	20
Variable costs per unit:
Direct materials	$53
Direct labor	$30
Variable manufacturing overhead	$7
Variable selling and administrative	$12
Fixed costs:
Fixed manufacturing overhead	$15,500
Fixed selling and administrative	$39,500

What is the total period cost for the month under the variable costing?

A. $55,000 B. $15,500 C. $58,460 D. $73,960

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

Selling price	$175
Units in beginning inventory	0
Units produced	7,250
Units sold	6,950
Units in ending inventory	300
Variable costs per unit:
Direct materials	$31
Direct labor	$61
Variable manufacturing overhead	$25
Variable selling and administrative	$25
Fixed costs:
Fixed manufacturing overhead	$195,750
Fixed selling and administrative	$29,700

What is the unit product cost for the month under variable costing?

A. $142 per units

B. $169 per units

C. $144 per units

D. $117 per units