A business operated at 100% of capacity during its first month, with the following results: Sales (105 units) $535,500 Production costs (131 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $72,222 18,440 32,269 30,732 $6,498 3,386 153,663 Fixed operating expenses 9,884 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $535,369 Ob. $412,335 Oc. $402,451 Od. $405,837
A business operated at 100% of capacity during its first month, with the following results: Sales (105 units) $535,500 Production costs (131 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead Operating expenses: Variable operating expenses $72,222 18,440 32,269 30,732 $6,498 3,386 153,663 Fixed operating expenses 9,884 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $535,369 Ob. $412,335 Oc. $402,451 Od. $405,837
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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