A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $179,700 234,600 256,400 97,500 $768,200 Variable operating expenses Fixed operating expenses 173,300 If 1,500 units remain unsold at the end of the month and sales total $1,012,000 for the month, what would be the amount of income from operations reported on the variab costing income statement? Oa. $73,555 Ob. $122,939 Oc. $52,398 Od. $60,016 $126,000 47,300

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 14E: The following events took place for Rushmore Biking Inc. during February, the first month of...
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A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (19,200 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
Operating expenses:
$179,700
234,600
256,400
97,500
Oa. $73,555
Ob. $122,939
Oc. $52,398
Od. $60,016
$768,200
Variable operating expenses
$126,000
Fixed operating expenses
47,300
173,300
If 1,500 units remain unsold at the end of the month and sales total $1,012,000 for the month, what would be the amount of income from operations reported on the variable
costing income statement?
Transcribed Image Text:A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (19,200 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $179,700 234,600 256,400 97,500 Oa. $73,555 Ob. $122,939 Oc. $52,398 Od. $60,016 $768,200 Variable operating expenses $126,000 Fixed operating expenses 47,300 173,300 If 1,500 units remain unsold at the end of the month and sales total $1,012,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?
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