A business operated at 100% of capacity during its first month, with the following results:

Sales (112 units)$660,800Production costs (140 units):Direct materials$89,291Direct labor22,798Variable factory overhead39,896Fixed factory overhead37,995189,980Operating expenses:Variable operating expenses$5,182Fixed operating expenses4,81910,001

The amount of operating income that would be reported on the absorption costing income statement is

a.$660,660

b.$529,211

c.$498,816

d.$534,030