Kekiwi Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During January, the company budgeted for 6,900 units, but its actual level of activity was 6,910 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Fixed Element per MonthVariable element per unitRevenue - $39.30 Direct labor$0 $3.10Direct materials 0 18.90Manufacturing overhead 45,900 1.70Selling and administrative expenses 27,000 0.30Total expenses$72,900 $24.00?Actual results for January: Revenue$281,473Direct labor$20,591Direct materials$134,889Manufacturing overhead$57,087Selling and administrative
expenses$28,063?The net operating income in the flexible budget for January would be closest to:
A. $40,902
B. $40,784
C. $32,823
D. $32,670
Answer: C
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