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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,100 units):Direct materials$182,600Direct labor227,200Variable factory overhead254,600Fixed factory

A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (18,100 units):Direct materials$182,600Direct labor227,200Variable factory overhead254,600Fixed factory overhead93,200$757,600Operating expenses: Variable operating expenses$122,800Fixed operating expenses42,000164,800

If 1,700 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is

a.$73,936

b.$62,407

c.$86,634

d.$71,156

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