Answer:
The total contribution margin for the month under variable costing is $103,360
Explanation:
<em>Variable Costing Considers only variable manufacturing costs in the calculation of product costs. Fixed Manufacturing Costs are regarded as period cost using this method.</em>
Sales ( $ 91 × 3,230 ) 293,930
Less Cost of Goods Sold
Opening Stock 0
<em>Add</em> <em>Cost of Goods Manufactured</em>
Direct materials ( $ 22 × 3,800) 83,600
Direct labor ( $ 32 × 3,800) 121,600
Variable manufacturing overhead ( $ 5 × 3,800) 19,000
Less Closing Stock ( $ 22+$ 32+ $ 5) × 570 ( 33,630) (190,570)
Contribution 103,360