Jean? Peck's Furniture's manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $400

after negotiations. In the month of? January, it manufactures 3,500

tables and sells 2,600 tables. Actual fixed costs are the same as the amount fixed costs budgeted for the month.

The following information is provided for the month of? January:

Variable manufacturing costs	$160	per unit
Fixed manufacturing costs	$90,000	per month
Fixed Administrative expenses	$29,000	per month

??

At the end of the month Jean? Peck's Furniture's has an ending inventory of finished goods of 770

units. The company also incurs a sales commission of $14

per unit. What is the operating income when using absorption? costing?

A.

$491,754

B.

$520,754

C.

$528,154

D.

$557,154