A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) Production costs (100 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $40,000 20,000 2,000 7,000 O b. $21,000 O c. $18,900 Od. $18,200 $ 8,000 1,000 $90,000 69,000 9,000 What is the amount of the income from operations that would be reported on the variable costing income statement? a. $18,000
A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) Production costs (100 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $40,000 20,000 2,000 7,000 O b. $21,000 O c. $18,900 Od. $18,200 $ 8,000 1,000 $90,000 69,000 9,000 What is the amount of the income from operations that would be reported on the variable costing income statement? a. $18,000
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 (90 units)
Production costs (100 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
$40,000
20,000
2,000
7,000
$ 8,000
1,000
$90,000
69,000
9,000
What is the amount of the income from operations that would be reported on the variable costing income statement?
a. $18,000
O b. $21,000
O c. $18,900
O d. $18,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ea1f414-2cfa-4d12-9b16-9c9fcbba0754%2Fe878f9ea-aff3-4748-b43b-ee180ebcbf41%2Fckhtkb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A business operated at 100% of capacity during its first month, with the following results:
Sales (90 units)
Production costs (100 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
$40,000
20,000
2,000
7,000
$ 8,000
1,000
$90,000
69,000
9,000
What is the amount of the income from operations that would be reported on the variable costing income statement?
a. $18,000
O b. $21,000
O c. $18,900
O d. $18,200
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