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A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $684,000 Production costs (143 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $92,750 23,681 41,441 39,468 c. $520,501 $6,179 4,016 $197,340 10,195 The amount of gross profit that would be reported on the absorption costing income statement is Ⓒa. 5683,857 Ob. $526,680 Oc

A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $684,000 Production costs (143 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $92,750 23,681 41,441 39,468 c. $520,501 $6,179 4,016 $197,340 10,195 The amount of gross profit that would be reported on the absorption costing income statement is Ⓒa. 5683,857 Ob. $526,680 Oc

FINANCIAL ACCOUNTING
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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A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $684,000 Production costs (143 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $92,750 23,681 41,441 39,468 $6,179 4,016 $197,340 10,195 The amount of gross profit that would be reported on the absorption costing income statement is a $683,857 Ob. $526,680 Oc. $520,501 Od $516,485
Transcribed Image Text:A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $684,000 Production costs (143 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $92,750 23,681 41,441 39,468 $6,179 4,016 $197,340 10,195 The amount of gross profit that would be reported on the absorption costing income statement is a $683,857 Ob. $526,680 Oc. $520,501 Od $516,485
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