A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $60,000 15,000 27,000 24,000 $5,590 3,490 $126,000 9,080 The amount of operating income that would be reported on the variable costing income statement is Oa. $479,880 O b. $365,320 Oc. $392,810 Od. $470,920

A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $480,000 Production costs (120 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $60,000 15,000 27,000 24,000 $5,590 3,490 $126,000 9,080 The amount of operating income that would be reported on the variable costing income statement is Oa. $479,880 O b. $365,320 Oc. $392,810 Od. $470,920

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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