A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $183,100 Direct labor 227,700 Variable factory overhead 246,200 Fixed factory overhead 104,700 $761,700 Operating expenses: Variable operating expenses $122,200 Fixed operating expenses 49,300 171,500 If 1,600 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? a.$216,975 b.$71,270 c.$207,274 d.$61,474
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,100 units): Direct materials $183,100 Direct labor 227,700 Variable factory overhead 246,200 Fixed factory overhead 104,700 $761,700 Operating expenses: Variable operating expenses $122,200 Fixed operating expenses 49,300 171,500 If 1,600 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? a.$216,975 b.$71,270 c.$207,274 d.$61,474
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 (17,100 units): | ||
| Direct materials | $183,100 | |
| Direct labor | 227,700 | |
| Variable factory |
246,200 | |
| Fixed factory overhead | 104,700 | $761,700 |
| Operating expenses: | ||
| Variable operating expenses | $122,200 | |
| Fixed operating expenses | 49,300 | 171,500 |
If 1,600 units remain unsold at the end of the month and sales total $1,079,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement?
a.$216,975
b.$71,270
c.$207,274
d.$61,474
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