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

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Accounting

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

Sales (114 units) $661,200
Production costs (143 units):
Direct materials $89,658
Direct labor 22,891
Variable factory overhead 40,060
Fixed factory overhead 38,153 190,762
Operating expenses:
Variable operating expenses $5,927
Fixed operating expenses 3,505 9,432

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

a.$499,692

b.$661,057

c.$503,197

d.$509,124

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