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TB MC Qu. 6-64 (Static) A manufacturing company that produces a single... A manufacturing company that produces a single product has provided the following data

TB MC Qu. 6-64 (Static) A manufacturing company that produces a single...

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

Selling price $ 130
Units in beginning inventory 0
Units produced 2,100
Units sold 1,900
Units in ending inventory 200
Variable costs per unit:
Direct materials $ 41
Direct labor $ 39
Variable manufacturing overhead $ 4
Variable selling and administrative expense $ 11
Fixed costs:
Fixed manufacturing overhead $52,500
Fixed selling and administrative expense $ 3,800

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

Multiple Choice

  • $15,200

  • $(6,600)

  • $10,200

  • $5,000

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