A Company Reports the Following Information for Its First Year

question 138

Multiple Choice

A company reports the following information for its first year of operations:
$\begin{array}{ll}\text { Units produced this year } & 650 \text { units } \\\text { Units sold this year } & 500 \text { units } \\\text { Direct materials } & \$ 750 \text { per unit } \\\text { Direct labor } & \$ 1,000 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 308,750 \text { in total }\end{array}$

If the company's cost per unit of finished goods using variable costing is $2,375,what is total variable overhead?

• A) $237,500
• B) $75,000
• C) $312,500
• D) $406,250
• E) $97,500

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