A business operated at 100% of capacity during its first month, with the following results: $655,400 Sales (113 units) Production costs (141 units): $88,404 Direct materials 22,571 Direct labor 39,500 Variable factory overhead 37,619 188,094 Fixed factory overhead Operating expenses: Variable operating expenses $5,228 3,439 8,667 Fixed operating expenses The amount of gross profit that would be reported on the absorption costing income statement is Oa. $495,991 Ob. $504,658 Oc. S655,259 Od. $499,430

A business operated at 100% of capacity during its first month, with the following results: $655,400 Sales (113 units) Production costs (141 units): $88,404 Direct materials 22,571 Direct labor 39,500 Variable factory overhead 37,619 188,094 Fixed factory overhead Operating expenses: Variable operating expenses $5,228 3,439 8,667 Fixed operating expenses The amount of gross profit that would be reported on the absorption costing income statement is Oa. $495,991 Ob. $504,658 Oc. S655,259 Od. $499,430

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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