Question
A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $513,000 Production costs (142 units): Direct materials
A business operated at 100% of capacity during its first month, with the following results:
| Sales (114 units) | $513,000 | |
| Production costs (142 units): | ||
Direct materials | $69,076 | |
Direct labor | 17,636 | |
Variable factory overhead | 30,864 | |
Fixed factory overhead | 29,394 | 146,970 |
| Operating expenses: | ||
Variable operating expenses | $5,707 | |
Fixed operating expenses | 4,675 | 10,382 |
What is the amount of the income from operations that would be reported on the absorption costing income statement?
a. $512,858
b. $408,226
c. $384,628
d. $412,901
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Intermediate Accounting
Authors: Kin Lo, George Fisher
3rd Edition Vol. 1
133865940, 133865943, 978-7300071374
