A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $672,600 Production costs (142 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $90,566 23,123 40,466 38,539 $5,659 3,099 $192,694 8,758 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $672,458 Ob. $517,902 Oc. $512,243 Od. $509,144

A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $672,600 Production costs (142 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $90,566 23,123 40,466 38,539 $5,659 3,099 $192,694 8,758 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $672,458 Ob. $517,902 Oc. $512,243 Od. $509,144

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 14E: The following events took place for Rushmore Biking Inc. during February, the first month of...

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