15.

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

Sales (110 units)		$539,000
Production costs (138 units):
Direct materials	$73,097
Direct labor	18,663
Variable factory overhead	32,660
Fixed factory overhead	31,106	155,526
Operating expenses:
Variable operating expenses	$5,778
Fixed operating expenses	4,427	10,205

What is the amount of the income from operations that would be reported on the absorption costing income statement?

a.$434,047

b.$404,824

c.$538,862

d.$429,620