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

question 169

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Magenta Inc.reports the following information for the current year which is its first year of operations:
 Units produced this year 750,000 units  Units sold this year 740,000 units  Direct materials $18.30 per unit  Direct labor $14.20 per unit  Variable overhead ? in total  Fixed overhead $4,500,000 in total \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?

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