Jean Peck's Furniture manufactures tables for hospitality sector. It takes only bulk orders and each table is sold for $500 after negotiations. In the month of January, it manufactures 3,000 tables and sells 2,600 tables. Actual fixed costs are the same as the amount of fixed costs budgeted for the month.
The following information is provided for the month of January:
| Variable manufacturing costs | $140 per unit | |
| Fixed manufacturing costs | $90,000 per month |
| Fixed Administrative expenses | $30,000 per month |
At the end of the month Jean Peck's Furniture has an ending inventory of finished goods of 400 units. The company also incurs a sales commission of $13 per unit.
What is the operating income when using absorption costing? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)
◦ $828,000
◦ $858,000
◦ $794,200
◦ $824,200
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