A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (19,800 units):Direct materialsDirect laborVariable factory overheadFixed factory overheadOperating expenses:Variable operating expensesFixed operating expenses$176,400226,100255,200103,100a. $66,434b. $192,734c. $76,848Od. $203,046$132,20049,700$760,800181,900181,900If 2,000 units remain unsold at the end of the month and sales total $1,069,000 for the month, the amount of operating incomereported on the absorption costing income statement would be

Solution- Calculation the amount of production cost for 17800 units (19800 - 2000) Production cost…

Answered: ses 255,200 103,100 $132,200 $760,800

Business

Accounting

ses 255,200 103,100 $132,200 $760,800

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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Question

A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (19,800 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
Variable operating expenses
Fixed operating expenses
$176,400
226,100
255,200
103,100
a. $66,434
b. $192,734
c. $76,848
Od. $203,046
$132,200
49,700
$760,800
181,900
181,900
If 2,000 units remain unsold at the end of the month and sales total $1,069,000 for the month, the amount of operating income
reported on the absorption costing income statement would be

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