If 2000 units remain unsold at the end of the month and

Reference no: EM13579724

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units):

Direct materials $140,000

Direct labor 40,000

Variable factory overhead 20,000

Fixed factory overhead 4,000 $204,000

Operating expenses:

Variable operating expenses $ 34,000

Fixed operating expenses 2,000 36,000

If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what is the amount of the manufacturing margin that would be reported on the variable costing income statement?

Reference no: EM13579724

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