Question:
Feheln Company, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price
|
$114
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
7,300
|
|
Units sold
|
7,200
|
|
Units in ending inventory
|
100
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$30
|
|
Direct labor
|
$53
|
|
Variable manufacturing overhead
|
$3
|
|
Variable selling and administrative
|
$8
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$73,000
|
|
Fixed selling and administrative
|
$57,600
|
What is the net operating income for the month under variable costing?
A) $1,000
B) $14,400
C) $13,400
D) $4,800