Farron Corporation, which has only one product, has provided the following data

Question

Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit $144 0 9,350 8,950 400 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs Fixed manufacturing overhead Fixed selling and administrative $26 $68 $14 $18 $140,250 $9,600 What is the net operating income for the month under absorption costing? $6,000 O $11.250 O s17.250 o $31,950 Type here to search

Explanation / Answer

Net operating income under absorption costing :

so answer is c) $17,250

Note : As per chegg policy only one question in one time pls post second question individually for answer

Sales (8950*144) 1288800 Cost of goods sold (8950*123) (1100850) Gross profit 187950 Selling and administrative expense (8950*18+9600) (170700) Net operating income 17250

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