12. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: selling price $126

units in beginning inventory 0

units produced 8,500

units sold 8,300

units in ending inventory 200

Direct materials $36

Direct labor $52

Variable manufacturing overhead $2

Variable selling and administration $9

Fixed manufacturing overhead 127,500

fixed selling administration $91,300

What is the net operating income for the month under variable costing?
A. $5,300
B. $3,000
C. $(12,700)
D. $8,300