Question - A business operated at 100% of capacity during its first month, with the following results:
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Sales (90 units)
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$90,000
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Production costs (100 units):
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Direct materials
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$40,000
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|
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Direct labor
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20,000
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|
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Variable factory overhead
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2,000
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|
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Fixed factory overhead
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7,000
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69,000
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Operating expenses:
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Variable operating expenses
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$8,000
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|
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Fixed operating expenses
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1,000
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9,000
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What is the amount of the income from operations that would be reported on the absorption costing income statement?
$21,000
$18,900
$18,200
$27,900