Cloudy Company Reports the Following Information for the Current Year

question 22

Multiple Choice

Cloudy Company reports the following information for the current year:
$\begin{array}{ll}\text { Units produced this year } & 51,000 \text { units } \\\text { Units sold this year } & 53,000 \text { units } \\\text { Direct materials } & \$ 6 \text { per unit } \\\text { Direct labor } & \$ 3 \text { per unit } \\\text { Variable overhead } & \$ 255,000 \text { in total } \\\text { Fixed orerhead } & ? \text { in total }\end{array}$


If the company's cost per unit of finished goods using absorption costing is $18,what is total fixed overhead?

• A) $204,000
• B) $212,000
• C) $213,690
• D) $222,070
• E) $459,000

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Definitions:

Proxy Voting

The process by which a shareholder delegates their voting power to a representative, allowing them to vote at corporate meetings in their absence.

Cumulative Voting

A voting system that allows shareholders to concentrate their vote on one candidate rather than distributing their votes among multiple candidates.

Shareholder Proposal

A formal recommendation or requirement that is submitted to the shareholders for a vote at a company's annual meeting.

Negligent Conduct

Behavior that falls below the standards of care established by law for the protection of others against unreasonable risk of harm.