A business operated at 100% of capacity during its first month and incurred the following costs:Production costs (19,100 units):Direct materialsDirect laborVariable factory overheadFixed factory overhead$173,300234,900251,70092,100 $752,000Operating expenses:Variable operating expenses$131,700Fixed operating expenses45,600177,300If 1,600 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet isOa. $55,280Ob. $66,312Oc. $77,847Od. $62,995

Answer : Total production cost per unit : Direct material $173,300 Direct labor 234,900…

Answered: overhead erhead S: 234,900 251,700…

overhead erhead S: 234,900 251,700 92,100 $752,000 ng expenses $131,700 expenses 45,600 177,300 ain unsold at the end of the month, the amount of inventory that would be reported on the variable

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 23E: Orinder Company provided the following information for the last calendar year: During the year,...

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Question

A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (19,100 units):
Direct materials
Direct labor
Variable factory overhead
Fixed factory overhead
$173,300
234,900
251,700
92,100 $752,000
Operating expenses:
Variable operating expenses
$131,700
Fixed operating expenses
45,600
177,300
If 1,600 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is
Oa. $55,280
Ob. $66,312
Oc. $77,847
Od. $62,995

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