Magenta Inc If the Company's Cost Per Unit of Finished Goods Using

question 150

Multiple Choice

Magenta Inc.reports the following information for the current year which is its first year of operations: $\begin{array}{ll}\text { Units produced this year } & 750,000 \text { units } \\\text { Units sold this year } & 740,000 \text { units } \\\text { Direct materials } & \$ 18.30 \text { per unit } \\\text { Direct labor } & \$ 14.20 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 4,500,000 \text { in total }\end{array}$ If the company's cost per unit of finished goods using absorption costing is $39.75, what is total variable overhead?

• A)$925,000
• B)$877,500
• C)$937,500.
• D)$865,800
• E)$5,437,500

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Definitions:

Origin

An attachment site of a skeletal muscle that does not move when a muscle contracts.

Insertion

An attachment site of a skeletal muscle that moves when a muscle contracts.

Antagonist

A substance that opposes or inhibits the action of another, especially in pharmacology or biochemistry.

Dorsiflexion

The movement that brings the top of the foot toward the shin, a pivotal motion in walking, running, and other activities.