Aaker Company, Which Has Only One Product, Has Provided the Following

question 140

Multiple Choice

Aaker Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array} { | l | r | } \hline \text { Selling price } & \$ 99 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 6,300 \\\hline \text { Units sold } & 6,000 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 12 \\\hline \text { Direct labour } & \$ 42 \\\hline \text { Variable manufacturing overhead } & \$ 6 \\\hline \text { Variable selling and administrative } & \$ 6 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 170,100 \\\hline \text { Fixed selling and administrative } & \$ 24,000 \\\hline\end{array}$



-What is the operating income (loss) for the month under variable costing?

• A) ($14,100).
• B) $3,900.
• C) $8,100.
• D) $12,000.

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Definitions:

Emerging Adults

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Adolescents

Individuals in the developmental stage between childhood and adulthood, often associated with the teenage years.

Emerging Adulthood

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A term referring to the social norms, values, ethical beliefs, and philosophical notions that have originated from or are associated with the Western world.