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A business operated at 100% of capacity during its first month, with the following results: Sales...

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 $75,000
   Direct labor 18,750
   Variable factory overhead 33,750
   Fixed factory overhead 30,000 157,500
Operating expenses:
   Variable operating expenses $5,100
   Fixed operating expenses 3,470 8,570

The amount of operating income that would be reported on the variable costing income statement is

a. $459,430

b. $591,430

c. $599,850

d. $492,900

Business   Accounting   
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