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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials Direct labor Variable
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $70,000 20,000 10,000 2.000 $102,000 Operating expenses Variable operating expenses $17.000 Fixed operating expenses 1.000 18,000 If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the manufacturing margin that would be reported on the absorption costing income statement? a. 350.000 Ob. 570.000 Oc. not reported Od. $54.000
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