A business operated at 100% of capacity during its first month and incurred the following...
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Accounting
A business operated at 100% of capacity during its first month and incurred the following costs:
| Production costs (10,000 units): |
|
|
| Direct materials | $140,000 |
|
| Direct labor | 40,000 |
|
| Variable factory overhead | 20,000 |
|
| Fixed factory overhead | 4,000 | $204,000 |
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|
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| Operating expenses: |
|
|
| Variable operating expenses | $ 34,000 |
|
| Fixed operating expenses | 2,000 | 36,000 |
If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?
| $100,800 | ||
| $100,000 | ||
| $114,800 | ||
| $140,000 |
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