A business operated at 100% of capacity during its first month, with the following results: Sales (106 units) $625,400 Production costs (132 units): Direct materials $84,188 Direct labor 21,495 Variable factory overhead 37,616 Fixed factory overhead 35,825 179,124 Operating expenses: Variable operating expenses $5,989 Fixed operating expenses 3,551 9,540 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $475,569 Ob. $625,268 Oc. $481,558 Od. $472,018

A business operated at 100% of capacity during its first month, with the following results: Sales (106 units) $625,400 Production costs (132 units): Direct materials $84,188 Direct labor 21,495 Variable factory overhead 37,616 Fixed factory overhead 35,825 179,124 Operating expenses: Variable operating expenses $5,989 Fixed operating expenses 3,551 9,540 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $475,569 Ob. $625,268 Oc. $481,558 Od. $472,018

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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