A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs (18,800 units): | ||
Direct materials | $182,200 | |
Direct labor | 221,300 | |
Variable factory overhead | 257,400 | |
Fixed factory overhead | 103,200 | $764,100 |
Operating expenses: | ||
Variable operating expenses | $127,200 | |
Fixed operating expenses | 45,000 | 172,200 |
If 1,800 units remain unsold at the end of the month and sales total $1,057,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?
a.$184,050
b.$73,159
c.$63,278
d.$89,646
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