A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $499,200 Production costs (120 units): Direct materials $67,454 Direct labor 17,222 Variable factory overhead 30,139 Fixed factory overhead 28,705 143,520 Operating expenses: Variable operating expenses $5,260 Fixed operating expenses 4,634 9,894 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $397,454 Ob. Ob. $499,080 Oc. $374,489 Od. $402,088

Question
A business operated at 100% of capacity during its first month, with the following results:
Sales (96 units)
$499,200
Production costs (120 units):
Direct materials
$67,454
Direct labor
17,222
Variable factory overhead
30,139
Fixed factory overhead
28,705
143,520
Operating expenses:
Variable operating expenses
$5,260
Fixed operating expenses
4,634
9,894
What is the amount of the income from operations that would be reported on the absorption costing income statement?
Oa. $397,454
Ob.
Ob. $499,080
Oc. $374,489
Od. $402,088
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Transcribed Image Text

A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $499,200 Production costs (120 units): Direct materials $67,454 Direct labor 17,222 Variable factory overhead 30,139 Fixed factory overhead 28,705 143,520 Operating expenses: Variable operating expenses $5,260 Fixed operating expenses 4,634 9,894 What is the amount of the income from operations that would be reported on the absorption costing income statement? Oa. $397,454 Ob. Ob. $499,080 Oc. $374,489 Od. $402,088