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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 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

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 (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
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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