A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling Price $86 Units in beginning inventory 0 Units produced 3,500 Units sold 3,400 Unit in ending inventory 100 Variable costs per unit: Direct materials $37 Direct labor $15 Variable manufacturing overhead $5 Variable selling and administrative $10 Fixed costs: Fixed manufacturing overhead $24,500 Fixed selling and administrative $27,200 The total gross margin for the month under the absorption costing approach is:A) $81,200B) $74,800C) $64,600D) $13,600

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling Price $86 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	$86
Units in beginning inventory	0
Units produced	3,500
Units sold	3,400
Unit in ending inventory	100
Variable costs per unit:
Direct materials	$37
Direct labor	$15
Variable manufacturing overhead	$5
Variable selling and administrative	$10
Fixed costs:
Fixed manufacturing overhead	$24,500
Fixed selling and administrative	$27,200

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

A) $81,200

B) $74,800

C) $64,600

D) $13,600

Nov 11, 2021