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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

 



Selling price $ 78

Units in beginning inventory 0
Units produced 8,800
Units sold 8,700
Units in ending inventory 100



Variable costs per unit:
Direct materials $ 18
Direct labor $ 10
Variable manufacturing overhead $ 4
Variable selling and administrative expense $ 5
Fixed costs:
Fixed manufacturing overhead $ 255,200
Fixed selling and administrative expense $ 87,000

What is the net operating income for the month under absorption costing?
$11,300
$17,400
$14,500
$2,900

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