A Company Reports the Following Information Regarding Its Production Cost

question 173

Essay

A company reports the following information regarding its production cost:
$\begin{array}{ll}\text { Units produced } & 14,000 \text { units } \\\text { Direct labor } & \$ 13 \text { per unit } \\\text { Direct materials } & \$ 3 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 56,000 \text { in tota }\end{array}$

Required: Perform the following independent calculations.
a.Compute total variable overhead cost if the production cost per unit under variable costing is $73.
b.Compute total variable overhead cost if the production cost per unit under absorption costing is $73.

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Definitions:

Ventricular Contraction

The process where the ventricles of the heart contract to pump blood out of the heart.

Arteries

Vessels that transport blood rich in oxygen from the heart to different areas of the body.

Constriction

The act of tightening or narrowing of a passage or opening in the body or any other structure.

Muscular Wall

Structure composed of muscle tissue that makes up part of the body's organs, such as the stomach or heart, enabling movement and function.