Reference no: EM131580575

Problem - Khanam Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $133  

Units in beginning inventory 0  

Units produced 8,850

Units sold 8,950

Units in ending inventory 850

Variable costs per unit:   

Direct materials $29   

Direct labor $46    

Variable manufacturing overhead $10   

Variable selling and administrative $20  

Fixed costs:    

Fixed manufacturing overhead $70,800    

Fixed selling and administrative $164,200 

The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.

What is the net operating income for the month under absorption costing?