A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,000 units): Direct materials $178,000 Direct labor 239,300 Variable factory overhead 267,100 Fixed factory overhead 93,500 $777,900 Operating expenses: Variable operating expenses $127,200 Fixed operating expenses 48,400 175,600 . If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is O a. $95,350 b. $81,160 c. $68,440 d. $77,792