A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $179,700 234,600 256,400 97,500 $768,200 Variable operating expenses $126,000 Fixed operating expenses 47,300 173,300 If 1,500 units remain unsold at the end of the month and sales total $1,012,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? Oa. $73,555 Ob. $122,939 Oc. $52,398 Od. $60,016

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $179,700 234,600 256,400 97,500 $768,200 Variable operating expenses $126,000 Fixed operating expenses 47,300 173,300 If 1,500 units remain unsold at the end of the month and sales total $1,012,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? Oa. $73,555 Ob. $122,939 Oc. $52,398 Od. $60,016

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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A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,700 units): Direct materials $181,900 Direct labor 237,500 Variable factory overhead 254,900 Fixed factory overhead 93,200 $767,500 Operating expenses: Variable operating expenses $121,300 Fixed operating expenses 43,000 164,300 If 1,800 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is Oa. $61,611 Ob. $85,139 Oc. $72,694 Od. $70,128
A business operated at 100% of capacity during its first month, with the following results: Sales (104 units) $436,800 Production costs (130 units): Direct materials $59,023 Direct labor 15,070 Variable factory overhead 26,372 Fixed factory overhead 25,115 125,580 Operating expenses: Variable operating expenses $5,199 Fixed operating expenses 4,413 9,612 The amount of operating income that would be reported on the absorption costing income statement is a.$346,816 b.$351,229 c.$436,670 d.$326,725
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