A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $183,100 Direct labor 227,700 Variable factory overhead 246,200 Fixed factory overhead 104,700 $761,700 Operating expenses: Variable operating expenses $122,200 Fixed operating expenses 49,300 171,500 If 1,600 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? a.$216,975 b.$71,270 c.$207,274 d.$61,474

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $183,100 Direct labor 227,700 Variable factory...

A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (17,100 units):
Direct materials	$183,100
Direct labor	227,700
Variable factory overhead	246,200
Fixed factory overhead	104,700	$761,700
Operating expenses:
Variable operating expenses	$122,200
Fixed operating expenses	49,300	171,500

If 1,600 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement?

a.$216,975

b.$71,270

c.$207,274

d.$61,474

Jun 03, 2022

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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $183,100 Direct labor 227,700 Variable factory...

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