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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,200 units): Direct materials $179,300 Direct labor
A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (17,200 units):
Direct materials $179,300
Direct labor 235,500
Variable factory overhead 263,400
Fixed factory overhead 100,100 $778,300
Operating expenses:
Variable operating expenses $122,900
Fixed operating expenses 48,000 170,900
If 1,900 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is
a.$88,494
b.$85,956
c.$104,853
d.$74,917
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