Gage Company Reports the Following Information for Its First Year

question 26

Multiple Choice

Gage Company reports the following information for its first year of operations: $\begin{array}{ll}\text { Units produced this year } & 7,000 \text { units } \\\text { Units sold this year } & 6,500 \text { units } \\\text { Direct materials } & \$ 22 \text { per unit } \\\text { Direct labor } & \$ 30 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 56,000 \text { in total }\end{array}$ 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