K A business operated at 100% of capacity during its first month, with the following results: Sales (98 units) $490,000 Production costs (122 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $65,941 16,836 29,463 28,060 Oc. $389,996 Od. $367,456 Operating expenses: Variable operating expenses Fixed operating expenses 9,844 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $394,087 Ob. $489,878 140,300 $5,753 4,091

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A business operated at 100% of capacity during its first month, with the following results:
Sales (98 units)
$490,000
Production costs (122 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
$65,941
16,836
29,463
28,060
Oc. $389,996
Od. $367,456
Operating expenses:
Variable operating expenses
Fixed operating expenses
9,844
What is the amount of the income from operations that would be reported on the absorption costing income statement?
Oa. $394,087
Ob. $489,878
140,300
$5,753
4,091
Transcribed Image Text:A business operated at 100% of capacity during its first month, with the following results: Sales (98 units) $490,000 Production costs (122 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $65,941 16,836 29,463 28,060 Oc. $389,996 Od. $367,456 Operating expenses: Variable operating expenses Fixed operating expenses 9,844 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $394,087 Ob. $489,878 140,300 $5,753 4,091
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