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A business operated at 100% of capacity during its first month, with the following results: Sales (111 units) $632,700 Production costs (139 units): Direct materials

A business operated at 100% of capacity during its first month, with the following results: Sales (111 units) $632,700 Production costs (139 units): Direct materials $85,648 Direct labor 21,867 Variable factory overhead 38,268 Fixed factory overhead 36,446 182,229 Operating expenses: Variable operating expenses Fixed operating expenses $5,994 4,629 10,623 The amount of operating income that would be reported on the absorption costing income statement is Ca. $632,561 b. $476,556 c. $505,660 d. $510,289

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