Abdol Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $86
Units in beginning inventory 0
Units produced 6,600
Units sold 6,500
units ending inventory 100
Variable cost per unit:
Direct Materials $22
Direct Labor $ 12
Variable manufacturing overhead $4
Variable selling and administration $6
Fixed Cost:
Fixed Manufacturing overhead $231000
Fixed selling and administration $32,500
- What is the net operating income for the month under variable costing?
I have 231,000/6600=35
DM+DL+VMO+35
22+12+4+35=73
I do not know where to go after this??
- What is the net operating income for the month under absorption costing?