Reference no: EM132519907
Question - A business operated at 100% of capacity during its first month, with the following results:
Sales (112 units) $660,800
Production costs (140 units): Direct materials $89,291
Direct labor 22,798
Variable factory overhead 39,896
Fixed factory overhead 37,995 189,980
Operating expenses: Variable operating expenses $5,182
Fixed operating expenses 4,819 10,001
Required - Compute the amount of operating income that would be reported on the absorption costing income statement?
a. $660,660
b. $529,211
c. $498,816
d. $534,030