Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
|
Selling price
|
$99
|
|
|
|
|
Units in beginning inventory
|
0
|
|
Units produced
|
6,300
|
|
Units sold
|
6,000
|
|
Units in ending inventory
|
300
|
|
|
|
|
Variable costs per unit:
|
|
|
Direct materials
|
$12
|
|
Direct labor
|
$42
|
|
Variable manufacturing overhead
|
$6
|
|
Variable selling and administrative
|
$6
|
|
|
|
|
Fixed costs:
|
|
|
Fixed manufacturing overhead
|
$170,100
|
|
Fixed selling and administrative
|
$24,000
|
What is the net operating income for the month under variable costing?
$8,100
($14,100)
$12,000
$3,900