A business operated at 100% of capacity during its first month, with the following results:Sales (103 units)$515,000Production costs (129 units):Direct materialsDirect laborVariable factory overheadFixed factory overhead$69,72517,80231,15429,669Operating expenses:Variable operating expensesFixed operating expenses8,612The amount of gross profit that would be reported on the absorption costing income statement isOa. $387,938Ob. $396,551Oc. $514,871Od. $391,410$5,1403,472148,35020

Introduction: The profit a firm produces after deducting the costs of producing and marketing its…

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

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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