Farris Corporation, which has only one product, has provided the following data concerning its most recent...

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:


Selling price	$	108

Units in beginning inventory		0
Units produced		8,900
Units sold		8,500
Units in ending inventory		400


Variable costs per unit:
Direct materials	$	17
Direct labor	$	59
Variable manufacturing overhead	$	5
Variable selling and administrative expense	$	9
Fixed costs:
Fixed manufacturing overhead	$	133,500
Fixed selling and administrative expense	$	8,700

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

Brewer 8e Rechecks 2018-06-22

Multiple Choice

$16,800
$(21,600)
$6,000
$10,800

Solutions

Expert Solution

Solution :

The net operating income (loss) for the month under variable costing = $ 10,800

The solution is Option 4 = $ 10,800

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

ekkarill92 answered 1 year ago

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