A business operated at 100% of capacity during its first month, with the following results: Sales (109 units) $457,800 Production costs (136 units): Direct materials $61,747 Direct labor 15,765 Variable factory overhead 27,589 Fixed factory overhead 26,275 131,376 Operating expenses: Variable operating expenses $6,116 Fixed operating expenses 3,031 9,147 What is the amount of the income from operations that would be reported on the absorption costing income statement? a.$457,664 b.$343,359 c.$367,449 d.$364,418
A business operated at 100% of capacity during its first month, with the following results: Sales (109 units) $457,800 Production costs (136 units): Direct materials $61,747 Direct labor 15,765 Variable factory overhead 27,589 Fixed factory overhead 26,275 131,376 Operating expenses: Variable operating expenses $6,116 Fixed operating expenses 3,031 9,147 What is the amount of the income from operations that would be reported on the absorption costing income statement? a.$457,664 b.$343,359 c.$367,449 d.$364,418
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, with the following results:
| Sales (109 units) | $457,800 | |
| Production costs (136 units): | ||
| Direct materials | $61,747 | |
| Direct labor | 15,765 | |
| Variable factory |
27,589 | |
| Fixed factory overhead | 26,275 | 131,376 |
| Operating expenses: | ||
| Variable operating expenses | $6,116 | |
| Fixed operating expenses | 3,031 | 9,147 |
What is the amount of the income from operations that would be reported on the absorption costing income statement?
a.$457,664
b.$343,359
c.$367,449
d.$364,418
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