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Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 126 Units in
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price | $ | 126 | |
| Units in beginning inventory | 0 | ||
| Units produced | 1,900 | ||
| Units sold | 1,800 | ||
| Units in ending inventory | 100 | ||
| Variable costs per unit: | ||
| Direct materials | $ | 49 |
| Direct labor | $ | 28 |
| Variable manufacturing overhead | $ | 5 |
| Variable selling and administrative expense | $ | 11 |
| Fixed costs: | ||
| Fixed manufacturing overhead | $ | 32,300 |
| Fixed selling and administrative expense | $ | 23,400 |
What is the net operating income for the month under variable costing?
Multiple Choice
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$3,700
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$5,400
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$(4,500)
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$1,700
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