A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,600 units): Direct materials. Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $172,800 226,500 263,900 92,700 $132,500 47,300 $755,900 179,800 179,800 If 1,800 units remain unsold at the end of the month and sales total $1,102,000 for the month, the amount of operating income reported on the absorption costing income statement would be Oa. $224.250 O b. $66.050 O c. $57,950 O d. $232.240

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,600 units): Direct materials. Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $172,800 226,500 263,900 92,700 $132,500 47,300 $755,900 179,800 179,800 If 1,800 units remain unsold at the end of the month and sales total $1,102,000 for the month, the amount of operating income reported on the absorption costing income statement would be Oa. $224.250 O b. $66.050 O c. $57,950 O d. $232.240

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Description: A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (20,600 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expenses

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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