Reference no: EM132607845

Chown Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $110

Units in beginning inventory 0

Units produced 8,000

Units sold 7,800

Units in ending inventory 200

Variable costs per unit:

Direct materials $22

Direct labour $31

Variable manufacturing overhead $3

Variable selling and administrative $4

Fixed costs:

Fixed manufacturing overhead $248,000

Fixed selling and administrative $140,400

Problem 1: What was the total gross margin for the month under the absorption costing approach?

A) $179,400.

B) $196,800.

C) $390,000.

D) $7,800.