MC Qu. 57 A manufacturing company that ...

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

Selling price	$120
Units in beginning inventory	0
Units produced	7,100
Units sold	6,800
Units in ending inventory	300
Variable costs per unit:
Direct materials	$42
Direct labor	$33
Variable manufacturing overhead	$5
Variable selling and administrative	$11
Fixed costs:
Fixed manufacturing overhead	$127,800
Fixed selling and administrative	$68,000

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

$6,800

$197,200

$149,600

$179,000