A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,900 units): Direct materials $180,400 Direct labor 234,300 Variable factory overhead 269,900 Fixed factory overhead 104,500 $789,100 Operating expenses: Variable operating expenses $121,800 Fixed operating expenses 47,900 169,700 If 1,500 units remain unsold at the end of the month and sales total $1,109,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? a.$199,450 b.$56,634 c.$49,134 d.$68,813
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,900 units): Direct materials $180,400 Direct labor 234,300 Variable factory overhead 269,900 Fixed factory overhead 104,500 $789,100 Operating expenses: Variable operating expenses $121,800 Fixed operating expenses 47,900 169,700 If 1,500 units remain unsold at the end of the month and sales total $1,109,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? a.$199,450 b.$56,634 c.$49,134 d.$68,813
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A business operated at 100% of capacity during its first month and incurred the following costs:
| Production costs (20,900 units): | ||
| Direct materials | $180,400 | |
| Direct labor | 234,300 | |
| Variable factory |
269,900 | |
| Fixed factory overhead | 104,500 | $789,100 |
| Operating expenses: | ||
| Variable operating expenses | $121,800 | |
| Fixed operating expenses | 47,900 | 169,700 |
If 1,500 units remain unsold at the end of the month and sales total $1,109,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?
a.$199,450
b.$56,634
c.$49,134
d.$68,813
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