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

Production costs (19,500 units):

Direct materials$176,400

Direct labor 228,600

Variable factory overhead 244,200

Fixed factory overhead 96,000 $745,200

Operating expenses:

Variable operating expenses$122,900

1. Fixed operating expenses 49,400,172,300

If 2,000 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?

1. a.$94,103
2. b.$76,431
3. c.$66,580
4. d.$79,190