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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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