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Question - F Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $108
Units in beginning inventory 0
Units produced 7,700
Units sold 7,500
Units in ending inventory 200
Variable costs per unit:
Direct materials $26
Direct labor $38
Variable manufacturing overhead $3
Variable selling and administrative $4
Fixed costs:
Fixed manufacturing overhead $184,800
Fixed selling and administrative $90,000
Required -
A. What is the unit product cost for the month under variable costing?
B. What is the net operating income for the month under variable costing?
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