Answer:
$10, 950
Explanation:
What is the net operating income (loss) for the month under the variable costing?
Direct materials $ 20
Direct labour 62
Variable manufacturing overheads 8
Total variable costs 90
Sales ($120 x 8, 650) $ 1, 038, 000
Variable expenses:
Variable cost of goods sold ($90 x 8650) 778, 500
Variable selling admin costs ($12 x 8, 650) 103, 800
Contribution margin 155, 700
Fixed expenses:
Fixed manufacturing overheads 135, 750
Fixed selling and admin 9, 000
Net operating profit 10, 950
