A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $179,100 225,600 262,200 96,800 $763,700 Operating expenses: Variable operating expenses Fixed operating expenses 48,300 172,000 If 1,500 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable cost Oa. $65,159 Ob. $54,975 Oc. $62,942 Od. $77,118 $123,700
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $179,100 225,600 262,200 96,800 $763,700 Operating expenses: Variable operating expenses Fixed operating expenses 48,300 172,000 If 1,500 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable cost Oa. $65,159 Ob. $54,975 Oc. $62,942 Od. $77,118 $123,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:<
A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (18,200 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
$179,100
225,600
262,200
96,800
$763,700
Operating expenses:
Variable operating expenses
Fixed operating expenses
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. $65,159
Ob. $54,975
Oc. $62,942
Od. $77,118
$123,700
48,300
172,000

Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (20,700 units):
Direct materials
Direct labor
<
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
If 1,900 units remain unsold
Oa. $72,907
Ob. $86,390
Oc. $61,286
Od. $70,243
$174,200
227,800
265,700
97,400 $765,100
$126,600
49,500
176,100
the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is
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