The level of inventory of a manufactured product has increased by 8,626 units during a period. The following data are also available: Unit manufacturing costs of the period Variable Fixed $11.00 $8.00 Unit operating expenses of the period 4.00 5.00 The effect on operating income if absorption costing is used rather than variable costing would be a Oa. $69,008 increase Ob. $112,138 increase Oc. $112,138 decrease Od. $69,008 decrease A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials Direct labor $180,000 240,000 Variable factory overhead 280,000 Fixed factory overhead 100,000 $800,000 Operating expenses: Variable operating expenses Fixed operating expenses $130,000 50,000 180,000 If 1,500 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is Oa. $73,500 Ob. $52,500 Oc. $60,000 Od. $62,500