Loring Company Had the Following Data for the Month

question 102

Multiple Choice

Loring Company had the following data for the month:

Fixed overhead is $4,000 per month; it is applied to production based on normal activity of 2,000 units.During the month, 2,000 units were produced.Loring started the month with 300 units in beginning inventory, with unit product cost equal to this month's unit product cost.A total of 2,100 units were sold during the month at price of $14.Selling and administrative expense for the month, all fixed, totaled $3,600.
What is operating income under variable costing?

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Definitions:

Marketing Research Analyses

Marketing Research Analyses involve the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services.

Offshoring

The practice of moving a business process or service to a foreign country to capitalize on lower costs or more favorable economic conditions.

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The practice of using digital technologies to conduct business processes, including buying, selling, and providing customer service online.