A business operated at 100% of capacity during its first month, with the following results: Sales (103 units) $515,000 Production costs (129 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $69,725 17,802 31,154 29,669 148,350 $5,140 3,472 Operating expenses: Variable operating expenses Fixed operating expenses 8,612 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $387,938 Ob. $396,551 OC. $514,871 Od. $391,410
A business operated at 100% of capacity during its first month, with the following results: Sales (103 units) $515,000 Production costs (129 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $69,725 17,802 31,154 29,669 148,350 $5,140 3,472 Operating expenses: Variable operating expenses Fixed operating expenses 8,612 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $387,938 Ob. $396,551 OC. $514,871 Od. $391,410
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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![A business operated at 100% of capacity during its first month, with the following results:
Sales (103 units)
$515,000
Production costs (129 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
$69,725
17,802
31,154
29,669
Operating expenses:
Variable operating expenses
Fixed operating expenses
8,612
The amount of gross profit that would be reported on the absorption costing income statement is
Oa. $387,938
Ob. $396,551
Oc. $514,871
Od. $391,410
$5,140
3,472
148,350
20](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F88a1687c-6d1d-48f9-b35b-870cf85807cd%2Ff66d0b85-5199-4ec8-a181-02ad9e613ff6%2Fk4m645m_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 (103 units)
$515,000
Production costs (129 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
$69,725
17,802
31,154
29,669
Operating expenses:
Variable operating expenses
Fixed operating expenses
8,612
The amount of gross profit that would be reported on the absorption costing income statement is
Oa. $387,938
Ob. $396,551
Oc. $514,871
Od. $391,410
$5,140
3,472
148,350
20
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