A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,800 units): $179,400 Direct materials Direct labor Variable factory overhead Fixed factory overhead 238,900 253,100 101,400 $772,800 Operating expenses: Variable operating expenses $132,300 Fixed operating expenses 45,800 178,100 If 1,800 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. $86,445 b. $61,038 c. $73,064 d. $70,255