8. A business operated at 100% of capacity during its first month, with the following results: Sales (90 units):   $90,000 Production costs (100 units):       Direct materials $40,000     Direct labor 20,000     Variable factory overhead 2,000     Fixed factory overhead 7,000 69,000 Operating expenses:       Variable operating expenses $8,000     Fixed operating expenses 1,000 9,000 The amount of operating income that would be reported on the variable costing income statement is a.$18,000 b.$21,000 c.$18,900 d.$18,200   9. A business operated at 100% of capacity during its first month, with the following results: Sales (90 units)   $90,000 Production costs (100 units):      Direct materials $40,000      Direct labor 20,000      Variable factory overhead 2,000      Fixed factory overhead 7,000 69,000   Operating expenses:      Variable operating expenses $8,000      Fixed operating expenses 1,000 9,000 The amount of operating income that would be reported on the absorption costing income statement is a.$18,900 b.$21,000 c.$27,900 d.$18,200

Question

8. A business operated at 100% of capacity during its first month, with the following results:

Sales (90 units):   $90,000
Production costs (100 units):    
  Direct materials $40,000  
  Direct labor 20,000  
  Variable factory overhead 2,000  
  Fixed factory overhead 7,000 69,000
Operating expenses:    
  Variable operating expenses $8,000  
  Fixed operating expenses 1,000 9,000

The amount of operating income that would be reported on the variable costing income statement is

a.$18,000
b.$21,000
c.$18,900
d.$18,200
 

9. A business operated at 100% of capacity during its first month, with the following results:

Sales (90 units)   $90,000
Production costs (100 units):  
   Direct materials $40,000  
   Direct labor 20,000  
   Variable factory overhead 2,000  
   Fixed factory overhead 7,000 69,000
 
Operating expenses:  
   Variable operating expenses $8,000  
   Fixed operating expenses 1,000 9,000

The amount of operating income that would be reported on the absorption costing income statement is

a.$18,900
b.$21,000
c.$27,900
d.$18,200

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