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A business operated at 100% of capacity during its first month, with the following results: Sales (120 units) $528,000 Production costs (150 units): Direct

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A business operated at 100% of capacity during its first month, with the following results: Sales (120 units) $528,000 Production costs (150 units): Direct materials $71,346 Direct labor 18,216 Variable factory overhead 31,878 Fixed factory overhead 30,360 151,800 Operating expenses: Variable operating expenses Fixed operating expenses $6,092 4,678 10,770 The amount of operating income that would be reported on the absorption costing income statement is Oa. $420,078 Ob. $395,790 Oc. $527,850 Od. $424,756

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