A business operated at 100% of capacity during its first month, with the following results:...
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Accounting
A business operated at 100% of capacity during its first month, with the following results:
| Sales (120 units) | $600,000 | |
| Production costs (150 units): | ||
| Direct materials | $75,000 | |
| Direct labor | 18,750 | |
| Variable factory overhead | 33,750 | |
| Fixed factory overhead | 30,000 | 157,500 |
| Operating expenses: | ||
| Variable operating expenses | $5,100 | |
| Fixed operating expenses | 3,470 | 8,570 |
The amount of operating income that would be reported on the variable costing income statement is
a. $459,430
b. $591,430
c. $599,850
d. $492,900
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