A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,500 units): Direct materials $172,800 Direct labor 224,700 Variable factory overhead 261,700 Fixed factory overhead 98,200 $757,400 Operating expenses: Variable operating expenses $120,000 Fixed operating expenses 44,500 164,500 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? a. $71,280 b. $84,238 c. $99,665 X d. $81,881