A Company Reports the Following Information for Its First Year

question 6

Multiple Choice

A company reports the following information for its first year of operations: $\begin{array}{ll}\text { Units produced this year } & 650 \text { units } \\\text { Units sold this year } & 500 \text { units } \\\text { Direct materials } & \$ 750 \text { per unit } \\\text { Direct labor } & \$ 1,000 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 308,750 \text { in total }\end{array}$ If the company's cost per unit of finished goods using variable costing is $2,375, what is total variable overhead?

• A)$237,500
• B)$75,000
• C)$312,500
• D)$406,250
• E)$97,500

---

Definitions:

Trick-or-Treaters

Children who dress in costumes and go from house to house on Halloween asking for treats, such as candy, with the phrase "Trick or Treat."

Transgressions

Actions or behaviors that violate social norms, rules, or laws, leading to conflict or offenses within interpersonal relationships.

Halloween

An annual holiday celebrated on October 31st, characterized by activities such as trick-or-treating, costume parties, carving pumpkins into jack-o'-lanterns, and enjoying horror stories.

Deindividuation

A psychological state characterized by a loss of self-awareness and diminished sense of personal responsibility, often occurring in group settings.