Manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price $ 139
Units in beginning inventory 0
Units produced 2,990
Units sold 2,760
Units in ending inventory 230
Variable costs per unit:
Direct materials $ 50
Direct labor $ 15
Variable manufacturing overhead $ 12
Variable selling and administrative expense $ 9
Fixed costs:
Fixed manufacturing overhead $ 107,640
Fixed selling and administrative expense $ 24,840
The total gross margin for the month under absorption costing is:
A $71,760
B $22,080
C $135,480
D $146,280
