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A business operated at 100% of capacity during its first month, with the following results: Sales (104 units) $520,000 Production costs (130 units): Direct materials
A business operated at 100% of capacity during its first month, with the following results:
Sales (104 units) | $520,000 | |
Production costs (130 units): | ||
Direct materials | $65,000 | |
Direct labor | 16,250 | |
Variable factory overhead | 29,250 | |
Fixed factory overhead | 26,000 | 136,500 |
Operating expenses: | ||
Variable operating expenses | $5,400 | |
Fixed operating expenses | 4,160 | 9,560 |
The amount of operating income that would be reported on the variable costing income statement is
a.$426,200
b.$510,440
c.$519,870
d.$396,040
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