A business operated at 100% of capacity during its first month, with the following results: Sales (105 units) $535,500 Production costs (131 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $72,222 18,440 32,269 30,732 $6,498 3,386 153,663 Fixed operating expenses 9,884 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $535,369 Ob. $412,335 Oc. $402,451 Od. $405,837

A business operated at 100% of capacity during its first month, with the following results: Sales (105 units) $535,500 Production costs (131 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $72,222 18,440 32,269 30,732 $6,498 3,386 153,663 Fixed operating expenses 9,884 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $535,369 Ob. $412,335 Oc. $402,451 Od. $405,837

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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