A business operated at 100% of capacity during its first month, with the following results: Sales (112 units) $560,000 Production costs (140 units): Direct materials $70,000 Direct labor 17,500 Variable factory overhead 31,500 Fixed factory overhead 28,000 147,000 Operating expenses: Variable operating expenses $6,170 Fixed operating expenses 3,770 9,940 What is the amount of the income from operations that would be reported on the variable costing income statement?
A business operated at 100% of capacity during its first month, with the following results: Sales (112 units) $560,000 Production costs (140 units): Direct materials $70,000 Direct labor 17,500 Variable factory overhead 31,500 Fixed factory overhead 28,000 147,000 Operating expenses: Variable operating expenses $6,170 Fixed operating expenses 3,770 9,940 What is the amount of the income from operations that would be reported on the variable costing income statement?
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 (112 units) | $560,000 | |
| Production costs (140 units): | ||
| Direct materials | $70,000 | |
| Direct labor | 17,500 | |
| Variable factory |
31,500 | |
| Fixed factory overhead | 28,000 | 147,000 |
| Operating expenses: | ||
| Variable operating expenses | $6,170 | |
| Fixed operating expenses | 3,770 | 9,940 |
What is the amount of the income from operations that would be reported on the variable costing income statement?
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