please find answer A business operated at 100% of capacity during its firstmonth and incurred the following costs:Production costs (5,000 units)Direct materials$ 70,000Direct labor$ 20,000Variable factory overhead$ 10,000Fixed factory overhead$2,000$ 1,02,000Operating expenses:Variable operating expenses$ 17,000Fixed operating expenses$1,000$ 1,800If 1,000 units remain unsold at the end of the month andsales total $150,000 for the month, what would be theamount of income from operations reported on thevariable costing income statement?

Step 1: Understand the DataProduction Costs (5,000 units produced):Direct materials: $70,000Direct…

Answered: A business operated at 100% of capacity…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8EB: A production department within a company received materials of $7,000 and conversion costs of $5,000...

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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (2,500 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $42,500 85,000 47,500 12,500 O c. $5,250 O d. $5,760 $15,000 4,500 $187,500 19,500 If 75 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is O a. $6,210 O b. $5,625
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