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 (111 units) $521,700 Production costs (139 units): Direct materials $70,622 Direct labor 18,031 Variable factory overhead 31,554 Fixed factory overhead 30,052 150,259 Operating expenses: Variable operating expenses $5,348 Fixed operating expenses 3,288 8,636 The amount of gross profit that would be reported on the absorption costing income statement is
a.$396,361 b.$521,561 c.$401,709 d.$393,073
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