A business operated at 100% of capacity during its first month and incurred the following costs: Production
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Question:
A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (19,900 units): | ||
Direct materials | $176,400 | |
Direct labor | 229,400 | |
Variable factory overhead | 252,300 | |
Fixed factory overhead | 95,600 | $753,700 |
Operating expenses: | ||
Variable operating expenses | $132,100 | |
Fixed operating expenses | 44,500 | 176,600 |
If 1,800 units remain unsold at the end of the month and sales total $1,049,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement?
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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