A Company Reports the Following Information for Its First Year

question 60

Multiple Choice

A company reports the following information for its first year of operations: $\begin{array}{ll}\text { Units produced this year } & 43,000 \text { units } \\\text { Units sold this year } & 39,000 \text { units } \\\text { Direct materials } & \$ 0.57 \text { per unit } \\\text { Direct labor } & \$ 0.83 \text { per unit } \\\text { Variable overhead } & \$ 26,660 \text { in total } \\\text { Fixed overhead } & ? \text { in total }\end{array}$ If the company's cost per unit of finished goods using variable costing is $2.02, what is the amount of total fixed overhead?

• A)$26,660
• B)$35,690
• C)$24,510
• D)Some other amount
• E)Cannot be determined from the given data.

---

Definitions:

Hostile Takeover

An acquisition attempt by a company or individual against the target company's wishes.

Cash Bidding Price

The price offered in cash during an auction or bidding process for an asset or item.

Market Price

The market price at which you can currently buy or sell an asset or service.

Interest Tax Savings

The reduction in tax payments resulting from the deduction of interest payments on debt from taxable income.