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Aaker Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $99
Units in beginning inventory 0
Units produced 6,300
Units sold 6,000
Units in ending inventory 300
Variable costs per unit:
Direct materials $12
Direct labour $42
Variable manufacturing overhead $6
Variable selling and administrative $6
Fixed costs:
Fixed manufacturing overhead $170,100
Fixed selling and administrative $24,000
Question 1: What is the operating income (loss) for the month under absorption costing?
Option 1: $12,000.
Option 2: $3,900.
Option 3: $8,100.
Option 4: ($14,100).
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