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A business operated at 100% of capacity during its first month, with the following results: Sales (117 units) $561,600 Production costs (146 units): Direct materials
A business operated at 100% of capacity during its first month, with the following results:
Sales (117 units) | $561,600 | |
Production costs (146 units): | ||
Direct materials | $75,756 | |
Direct labor | 19,342 | |
Variable factory overhead | 33,849 | |
Fixed factory overhead | 32,237 | 161,184 |
Operating expenses: | ||
Variable operating expenses | $5,219 | |
Fixed operating expenses | 4,072 | 9,291 |
The amount of operating income that would be reported on the absorption costing income statement is
a.$453,047
b.$561,454
c.$448,975
d.$423,141
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