A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling Price $123 Units in beginning inventory 0 Units produced 5,900 Units sold 5,700 Unit in ending inventory 200 Variable costs per unit: Direct materials $40 Direct labor $32 Variable manufacturing overhead $3 Variable selling and administrative $5 Fixed costs: Fixed manufacturing overhead $135,700 Fixed selling and administrative $108,300 The total gross margin for the month under the absorption costing approach is:A) $245,100B) $162,100C) $142,500D) $5,700

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling Price $123 Units in beginning inventory 0 Units produced...

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling Price	$123
Units in beginning inventory	0
Units produced	5,900
Units sold	5,700
Unit in ending inventory	200
Variable costs per unit:
Direct materials	$40
Direct labor	$32
Variable manufacturing overhead	$3
Variable selling and administrative	$5
Fixed costs:
Fixed manufacturing overhead	$135,700
Fixed selling and administrative	$108,300

The total gross margin for the month under the absorption costing approach is:

A) $245,100

B) $162,100

C) $142,500

D) $5,700

Nov 11, 2021