A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,500 units): Direct materials $183,700 Direct labor 232,000 Variable factory overhead 267,700 Fixed factory overhead 93,300 $776,700 Operating expenses: Variable operating expenses Fixed operating expenses $127,500 42,600 170,100 If 1,800 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is Oa. $83,407 Ob. $70.308 Oc. $79,389 Od. $97.385