# Calculate Total Gross Margin Under Absorption Costing

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

 Selling price \$139 Units in beginning inventory 0 Units produced 2,990 Units sold 2,760 Units in ending inventory 230 Variable cost per unit: Direct materials \$50 Direct labor \$15 Variable manufacturing overhead \$12 Variable selling and administrative \$9 Fixed costs: Fixed manufacturing overhead \$107,640 Fixed selling and administrative expenses \$24,840

The total gross margin for the month under absorption costing is:

a. \$71,760

b. \$22,080

c. \$135,480

d. \$146,280

Summary

The question belongs to Accounting and it discusses about calculation of total gross margin under absorption costing.

Total Word Count 29

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