1. A business operated at 100% of capacity during its first month and incurred the following costs:

   Production costs (20,400 units):
   Direct materials	$181,700
   Direct labor	234,200
   Variable factory overhead	245,300
   Fixed factory overhead	91,700	$752,900
   Operating expenses:
   Variable operating expenses	$133,300
   Fixed operating expenses	45,900	179,200

   If 1,700 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.$55,097

   b.$66,208

   c.$77,675

   d.$62,742