31

A business operated at 100% of capacity during its first month, with the following results: Sales (118 units) Production costs (147 units): $542,800 Direct materials $73,097 Direct labor 18,663 Variable factory overhead Fixed factory overhead 32,660 31,106 155,526 Operating expenses: Variable operating expenses $6,015 Fixed operating expenses 4,553 10,568 What is the amount of the income from operations that would be reported on the absorption costing income statement? a. S432,357 b. $542,653 c. 5407,387 d. S436,910