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A business operated at 100% of capacity during its first month, with the following results: Sales (119 units) $714,000 Production costs (149 units): Direct
A business operated at 100% of capacity during its first month, with the following results: Sales (119 units) $714,000 Production costs (149 units): Direct materials $96,641 Direct labor 24,674 Variable factory overhead 43,180 Fixed factory overhead 41,125 205,620 Operating expenses: Variable operating expenses Fixed operating expenses $5,049 3,922 8,971 The amount of operating income that would be reported on the absorption costing income statement is Oa. $573,654 b. $540,808 Oc. $577,576 Od. $713,851
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