A Company Reports the Following Information Regarding Its Production Cost

question 107

Essay

A company reports the following information regarding its production cost:
$\begin{array}{ll}\text { Units produced } & 22,000 \text { units } \\\text { Direct labor } & \$ 31 \text { per unit } \\\text { Direct materials } & \$ 27 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 2,750,000 \text { in total }\end{array}$ Required: Perform the following independent calculations.
a.Compute total variable overhead cost if the production cost per unit under variable costing is $240.
b.Compute total variable overhead cost if the production cost per unit under absorption costing is $240.

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Definitions:

Brand

A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers.

Deep-seated Values

Values that are firmly fixed and are a significant part of an individual's core beliefs and attitudes.

Cola

A sweetened, carbonated soft drink flavored with vanilla, cinnamon, citrus oils, and other flavorings.

Sparkling Mineral Water

Water that contains various dissolved minerals and is carbonated, providing a fizzy texture, often consumed as a beverage.