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  3. a business operated at 100% of capacity during its

A business operated at 100% of capacity during its first month and incurred the following...

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Accounting

  1. A business operated at 100% of capacity during its first month and incurred the following costs:

    Production costs (20,400 units):
    Direct materials $181,700
    Direct labor 234,200
    Variable factory overhead 245,300
    Fixed factory overhead 91,700 $752,900
    Operating expenses:
    Variable operating expenses $133,300
    Fixed operating expenses 45,900 179,200

    If 1,700 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?

    a.$55,097

    b.$66,208

    c.$77,675

    d.$62,742

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