Hatfield Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $123 Units in beginning inventory 0 Units produced 6,400 Units sold 6,100 Units in ending inventory 300 Variable costs per unit: Direct materials $45 Direct labor $30 Variable manufacturing overhead $1 Variable selling and administrative $8 Fixed costs: Fixed manufacturing overhead $140,800 Fixed selling and administrative $91,500 What is the net operating income for the month under variable costing?
unit product cost | ||||||
direct materials | 45 | |||||
direct labor | 30 | |||||
variable manufacturing overhead | 1 | |||||
total unit product cost | 76 | |||||
sales | (6100*123) | 750300 | ||||
less:Variable cost | ||||||
variable cos tof good sold (6100*76) | 463600 | |||||
Variable selling & adm (6100*8) | 48800 | |||||
512400 | ||||||
Contribution margin | 237900 | |||||
Fixed expense | ||||||
fixed manufacturing overhead | 140,800 | |||||
Fixed selling & Adm expense | 91500 | |||||
232,300 | ||||||
Net operating income | 5,600 | |||||
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