What is the net operating income for the month under variable costing?
A)$6,600
B)$5,600
C)$(17,200)
D)$12,200

Question

Quizplus · Accepted Answer

To calculate the net operating income under variable costing, we need to subtract variable expenses from revenues. 
Revenue: $24,000
Variable expenses: 
Direct Materials: $7,000
Direct Labor: $3,000
Variable manufacturing overhead: $2,000
Variable selling and administrative expenses: $5,400
Total variable expenses: $17,400
Net Operating Income: $24,000 - $17,400 = $5,600. 
Therefore, the answer is B.

What Is the Net Operating Income for the Month Under