A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units): Direct materials $60,000 Direct labor 15,000 Variable factory overhead 27,000 Fixed factory overhead 24,000 126,000 Operating expenses: Variable operating expenses $5,690 Fixed operating expenses 3,830 9,520 The amount of contribution margin that would be reported on the variable costing income statement is a.$479,880 b.$470,480 c.$388,880 d.$392,710

A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units): Direct materials $60,000 Direct labor 15,000...

A business operated at 100% of capacity during its first month, with the following results:

Sales (96 units)		$480,000
Production costs (120 units):
Direct materials	$60,000
Direct labor	15,000
Variable factory overhead	27,000
Fixed factory overhead	24,000	126,000
Operating expenses:
Variable operating expenses	$5,690
Fixed operating expenses	3,830	9,520

The amount of contribution margin that would be reported on the variable costing income statement is

a.$479,880

b.$470,480

c.$388,880

d.$392,710

Jun 03, 2022