Gage Company Reports the Following Information for Its First Year

question 172

Multiple Choice

Gage Company reports the following information for its first year of operations: If the company's cost per unit of finished goods using variable costing is $63, what is total variable overhead?

• A) $21,000
• B) $71,500
• C) $77,000
• D) $19,500
• E) $16,590

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Definitions:

Tape-Wound

A type of magnetic core construction method where thin strips of magnetic material are wound into a coil to reduce eddy currents and increase magnetic efficiency.

Toroid

A doughnut-shaped component used in magnetic circuits, with a coil of wire wrapped around a ferromagnetic core to concentrate magnetic fields.

Tape-Wound Core

A core made by winding a continuous length of magnetic metal into a spiral.

Metal Sheets

Flat pieces of metal of uniform thickness, produced by rolling or hammering, used in a wide range of manufacturing and construction processes.