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A business operated at 100% of capacity during its first month, with the following results: Sales (113 units) $508,500 Production costs (141 units): Direct materials$68,589
A business operated at 100% of capacity during its first month, with the following results:
Sales (113 units) $508,500
Production costs (141 units):
Direct materials$68,589
Direct labor17,512
Variable factory overhead30,646
Fixed factory overhead29,188145,935
Operating expenses:
Variable operating expenses$6,076
Fixed operating expenses4,37410,450
The amount of operating income that would be reported on the absorption costing income statement is
a.$408,861
b.$508,359
c.$404,487
d.$381,094
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