Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price: $126 Units in beginning inventory: 0 Units produced: 3,100 Units sold: 3,000 Units in ending inventory: 100 Variable costs per unit: Direct materials: $22 Direct labor: $43 Variable manufacturing overhead: $3 Variable selling and administrative: $10 Fixed costs: Fixed manufacturing overhead: $89,900 Fixed selling and administrative: $42,000 What is the net operating income for the month under variable costing? Answer A. $15,000. B. $12,100. C. $2,900.

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

Selling price: $126
Units in beginning inventory: 0
Units produced: 3,100
Units sold: 3,000
Units in ending inventory: 100

Variable costs per unit:
Direct materials: $22
Direct labor: $43
Variable manufacturing overhead: $3
Variable selling and administrative: $10

Fixed costs:
Fixed manufacturing overhead: $89,900
Fixed selling and administrative: $42,000

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

Answer
A. $15,000.
B. $12,100.
C. $2,900.

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

Selling price: 126
Units in beginning inventory: 0
Units produced: 3,100
Units sold: 3,000
Units in ending inventory: 100

Variable costs per unit:
Direct materials:22
Direct labor: 43
Variable manufacturing overhead:3
Variable selling and administrative: 10

Fixed costs:
Fixed manufacturing overhead:89,900
Fixed selling and administrative: 42,000

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

Answer
A.15,000.
B. 12,100.
C.2,900.

Added by Lorenzo S.

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