A business operated at 100% of capacity during its first month, with the following results: Sales (120 units) $600,000 Production costs (150 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $75,000 18,750 33,750 30,000 157,500 Variable operating expenses $5,450 Fixed operating expenses 4,380 9,830 The amount of contribution margin that would be reported on the variable costing income statement is Oa. $488,170 O b. $599,850 O c. $590,170 Od. $492,550

A business operated at 100% of capacity during its first month, with the following results: Sales (120 units) $600,000 Production costs (150 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: $75,000 18,750 33,750 30,000 157,500 Variable operating expenses $5,450 Fixed operating expenses 4,380 9,830 The amount of contribution margin that would be reported on the variable costing income statement is Oa. $488,170 O b. $599,850 O c. $590,170 Od. $492,550

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter2: Job Order Costing

Section: Chapter Questions

Problem 14E: The following events took place for Rushmore Biking Inc. during February, the first month of...

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