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A business operated at 100% of capacity during its first month, with the following results: Sales (97 units) $543,200 Production costs (121 units): Direct materials
A business operated at 100% of capacity during its first month, with the following results:
Sales (97 units) | $543,200 | |
Production costs (121 units): | ||
Direct materials | $73,249 | |
Direct labor | 18,702 | |
Variable factory overhead | 32,728 | |
Fixed factory overhead | 31,169 | 155,848 |
Operating expenses: | ||
Variable operating expenses | $5,101 | |
Fixed operating expenses | 4,390 | 9,491 |
The amount of gross profit that would be reported on the absorption costing income statement is
a. $543,079
b. $418,264
c. $413,163
d. $408,773
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