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A Company Reports the Following Information Regarding Its Production Cost

question 12

Essay

A company reports the following information regarding its production cost:
 Units produced 22,000 units  Direct labor $31 per unit  Direct materials $27 per unit  Variable overhead ? in total  Fixed overhead $2,750,000 in tota \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 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 $240.
b.Compute total variable overhead cost if the production cost per unit under absorption costing is $240.

Definitions:

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