Clear Company Reports the Following Information for Its First Year

question 119

Multiple Choice

Clear Company reports the following information for its first year of operations:
$\begin{array}{ll}\text { Units produced this year } & 50,000 \text { units } \\\text { Units sold this year } & 49,000 \text { units } \\\text { Direct materials } & \$ 7 \text { per unit } \\\text { Direct labor } & \$ 3 \text { per unit } \\\text { Variable overhead } & \$ 210,000 \text { in total } \\\text { Fixed orerhead } & ? \text { in total }\end{array}$

If the company's cost per unit of finished goods using absorption costing is $19.30,what is total fixed overhead?

• A) $350,000
• B) $255,000
• C) $150,000
• D) $249,900
• E) $147,000