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A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $592,800 Production costs (143 units): Direct
A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $592,800 Production costs (143 units): Direct materials $80,383 Direct labor 20,523 Variable factory overhead 35,916 Fixed factory overhead 34,206 171,028 Operating expenses: Variable operating expenses Fixed operating expenses $5,761 3,066 8,827 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $447,629 Ob. $456,456 Oc. $592,657 Od. $450,695
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