Question
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (21,000 units): Direct materials $184,900 Direct labor
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (21,000 units): Direct materials $184,900 Direct labor 227,800 Variable factory overhead 257,100 Fixed factory overhead 93,000 $762,800 Operating expenses: Variable operating expenses $124,800 Fixed operating expenses 41,500 166,300 If 2,000 units remain unsold at the end of the month and sales total $1,107,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? a. $63,790 b. $72,648 c. $88,486 d. $241,790
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