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A business operated at 100% of capacity during its first month, with the following results: Sales (108 units) $475,200 Production costs (135 units): Direct materials
A business operated at 100% of capacity during its first month, with the following results:
Sales (108 units) | $475,200 | |
Production costs (135 units): | ||
Direct materials | $64,211 | |
Direct labor | 16,394 | |
Variable factory overhead | 28,690 | |
Fixed factory overhead | 27,325 | 136,620 |
Operating expenses: | ||
Variable operating expenses | $6,394 | |
Fixed operating expenses | 4,812 | 11,206 |
What is the amount of the income from operations that would be reported on the absorption costing income statement?
a. $475,065
b. $354,697
c. $376,558
d. $381,370
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