Q5

A business operated at 100% of capacity during its first month, with the following results Sales (113 units) $553,700 Production costs (141 units): Direct materials $74,686 Direct labor 19,069 Variable factory overhead 33,370 31,782 158,907 Fixed factory overhead Operating expenses: Variable operating expenses $5,795 3,858 9,653 Fixed operating expenses What is the amount of the gross profit that would be reported on the absorption costing income statement? Oa. $553,559 Ob. $416,696 Oc. $420,554 d. $426,349