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

Selling price	$	108
Units in beginning inventory		0
Units produced		8,900
Units sold		8,500
Units in ending inventory		400

Variable costs per unit:
Direct materials	$	17
Direct labor	$	59
Variable manufacturing overhead	$	5
Variable selling and administrative expense	$	9
Fixed costs:
Fixed manufacturing overhead	$	133,500
Fixed selling and administrative expense	$	8,700

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

Brewer 8e Rechecks 2018-06-22

Multiple Choice

• $16,800

• $(21,600)

• $6,000

• $10,800