A business operated at 100% of capacity during its first month, with the following results: Sales (119 units) $571,200 Production costs (149 units): Direct materials $77,313 Direct labor 19,740 Variable factory overhead 34,544 Fixed factory overhead 32,899 164,496 Operating expenses: Variable operating expenses $5,200 Fixed operating expenses 4,559 9,759 The amount gross profit would be reported on the absorption costing income statement is Da. $430,065 Ob. $571,051 Ɔc. $439,824 Od. $434,624
A business operated at 100% of capacity during its first month, with the following results: Sales (119 units) $571,200 Production costs (149 units): Direct materials $77,313 Direct labor 19,740 Variable factory overhead 34,544 Fixed factory overhead 32,899 164,496 Operating expenses: Variable operating expenses $5,200 Fixed operating expenses 4,559 9,759 The amount gross profit would be reported on the absorption costing income statement is Da. $430,065 Ob. $571,051 Ɔc. $439,824 Od. $434,624
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 1CMA
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![A business operated at 100% of capacity during its first month, with the following results:
Sales (119 units)
$571,200
Production costs (149 units):
Direct materials
$77,313
Direct labor
19,740
Variable factory overhead
34,544
Fixed factory overhead
32,899
164,496
Operating expenses:
Variable operating expenses
$5,200
Fixed operating expenses
4,559
9,759
The amount of gross profit that would be reported on the absorption costing income statement is
O a. $430,065
Оb. S571,051
Oc. $439,824
Od. $434,624](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5541ef45-4397-4265-b662-29882e411e63%2Fbe9a6f9b-93ee-45fb-8e41-60fdd305d401%2Fzw5xacm_processed.png&w=3840&q=75)
Transcribed Image Text:A business operated at 100% of capacity during its first month, with the following results:
Sales (119 units)
$571,200
Production costs (149 units):
Direct materials
$77,313
Direct labor
19,740
Variable factory overhead
34,544
Fixed factory overhead
32,899
164,496
Operating expenses:
Variable operating expenses
$5,200
Fixed operating expenses
4,559
9,759
The amount of gross profit that would be reported on the absorption costing income statement is
O a. $430,065
Оb. S571,051
Oc. $439,824
Od. $434,624
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