A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,300 units): Direct materials $175,400 Direct labor 234,800 Variable factory overhead 247,200 Fixed factory overhead 93,200 $750,600 Operating expenses: Variable operating expenses $133,700 Fixed operating expenses 46,800 180,500 If 1,700 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? a. $55,063 b. $77,974 c. $62,858 d. $66,250