Question
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,400 units): Direct materials $182,400 Direct
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,400 units): Direct materials $182,400 Direct labor 230,700 Variable factory overhead 266,600 Fixed factory overhead 92,900 $772,600 Operating expenses: Variable operating expenses Fixed operating expenses $134,300 41,300 175,600 If 2,000 units remain unsold at the end of the month and sales total $1,189,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? Oa. $88,805 Ob. $78,126 Oc. $108,989 Od. $318,976
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