A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,500 units): Direct materials $178,800 Direct labor 220,000 Variable factory overhead 261,200 Fixed factory overhead 102,800 $762,800 Operating expenses: Variable operating expenses $130,300 Fixed operating expenses 40,800 171,100 If 2,000 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is a. 885,438 b. $82,465 C 571,340 d. S100.962