A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,600 units): Direct materials $177,900 Direct labor 238,700 Variable factory overhead Fixed factory overhead 262,800 102,400 $781,800 Operating expenses: Variable operating expenses $127,700 Fixed operating expenses 46,700 174,400 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? O a. $73,767 O b. $62,084 Oc. $87,395 Od. $71,455