Question - 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
|
$170100
|
Fixed selling and administrative
|
$24.000
|
What is the net operating income for the month under absorption costing?
$3,900
$(14,100)
$12,000
$8,100