Reference: 08-19

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

Selling price$110Units in beginning inventory0Units produced8,000Units sold7,800Units in ending inventory200Variable costs per unit:Direct materials$22Direct labour$31Variable manufacturing overhead$3Variable selling and administrative$4Fixed costs:Fixed manufacturing overhead$248,000Fixed selling and administrative$140,400

What was the total gross margin for the month under the absorption costing approach?

Question 5 options:

A)

$179,400.

B)

$196,800.

C)

$390,000.

D)

$7,800.