Question
White Company manufactures a single product and has the following cost structure: Variable costs per unit: Direct materials $ 3.10 Direct labor $ 4.10 Variable
White Company manufactures a single product and has the following cost structure: Variable costs per unit: Direct materials $ 3.10 Direct labor $ 4.10 Variable manufacturing overhead $ 1.05 Variable selling and administrative expense $ 2.10 Fixed costs per month: Fixed manufacturing overhead $ 107,100 Fixed selling and administrative expense $ 65,100 The company produces 21,000 units each month. Assume beginning inventories are zero, 21,000 units are produced, and 20,000 units are sold in a month. If the unit selling price is $21, what is the net operating income under absorption costing for the month?
$45,900
$153,000
$87,900
$111,000
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