A business operated at 100% of capacity during its first month and incurred the

Question

A business operated at 100% of capacity during its first month and incurred the following costs:
Production costs(10,000 units) 140,000
Direct materials 40,000
Direct labor 20,000
variable factory overhead 4,000 204,000
fixed operating expences

Operating expences:
variable operating expences 34,000
Fixed operating ex[ences 2,000 36,000

if 2,000 units remain unsold at the the end of the month and sales total $300,000 for the month, what is the amount of the manufacturing margin that would be reported on variable costing income statement

a.) 114,000 b.) 140,000 c.) 106,000 d.) 104,000

Explanation / Answer

B. 140,000

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