23.

1. Question Content Area

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

   Production costs (18,300 units):
   Direct materials	$181,400
   Direct labor	220,000
   Variable factory overhead	262,100
   Fixed factory overhead	91,100	$754,600
   Operating expenses:
   Variable operating expenses	$121,400
   Fixed operating expenses	45,100	166,500

   If 1,600 units remain unsold at the end of the month and sales total $1,054,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?

   a.$58,011

   b.$191,025

   c.$65,976

   d.$80,533

24.

1. Question Content Area

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

   Production costs (18,000 units):
   Direct materials	$179,400
   Direct labor	220,700
   Variable factory overhead	262,800
   Fixed factory overhead	92,300	$755,200
   Operating expenses:
   Variable operating expenses	$132,600
   Fixed operating expenses	40,200	172,800

   If 1,700 units remain unsold at the end of the month and sales total $1,185,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement?

   a.$62,607

   b.$71,324

   c.$328,252

   d.$319,607