A business operated at 100% of capacity during its first month, with the following results: Sales (120 units) $600,000 Production costs (150 units): Direct materials $75,000 Direct labor 18,750 Variable factory overhead 33,750 Fixed factory overhead 30,000 157,500 Operating expenses: Variable operating expenses $5,480 Fixed operating expenses 3,270 8,750 The amount of operating income that would be reported on the variable costing income statement is a.$492,520 b.$599,850 c.$459,250 d.$591,250

A business operated at 100% of capacity during its first month, with the following results: Sales (120 units) $600,000 Production costs (150 units): Direct materials $75,000 Direct labor 18,750 Variable factory overhead 33,750 Fixed factory overhead 30,000 157,500 Operating expenses: Variable operating expenses $5,480 Fixed operating expenses 3,270 8,750 The amount of operating income that would be reported on the variable costing income statement is Oa. $492,520 Ob. $599,850 Oc. $459,250 Od. $591,250