A business operated at 100% of capacity during its first month, with the following results: Sales (109 units)   $457,800 Production costs (136 units):       Direct materials $61,747       Direct labor 15,765       Variable factory overhead 27,589       Fixed factory overhead 26,275 131,376   Operating expenses:       Variable operating expenses $6,116       Fixed operating expenses 3,031 9,147 What is the amount of the income from operations that would be reported on the absorption costing income statement? a.$457,664 b.$343,359 c.$367,449 d.$364,418

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Chapter2: Basic Cost Management Concepts
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A business operated at 100% of capacity during its first month, with the following results:

Sales (109 units)   $457,800
Production costs (136 units):  
    Direct materials $61,747  
    Direct labor 15,765  
    Variable factory overhead 27,589  
    Fixed factory overhead 26,275 131,376
 
Operating expenses:  
    Variable operating expenses $6,116  
    Fixed operating expenses 3,031 9,147

What is the amount of the income from operations that would be reported on the absorption costing income statement?

a.$457,664
b.$343,359
c.$367,449
d.$364,418
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