Magenta Inc If the Company's Cost Per Unit of Finished Goods Using

question 169

Multiple Choice

Magenta Inc.reports the following information for the current year which is its first year of operations:
$\begin{array}{ll}\text { Units produced this year } & 750,000 \text { units } \\\text { Units sold this year } & 740,000 \text { units } \\\text { Direct materials } & \$ 18.30 \text { per unit } \\\text { Direct labor } & \$ 14.20 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 4,500,000 \text { in total }\end{array}$

If the company's cost per unit of finished goods using absorption costing is $39.75,what is total variable overhead?

• A) $925,000
• B) $877,500
• C) $937,500.
• D) $865,800
• E) $5,437,500

---

Definitions:

Basic Tastes

The set of taste sensations that includes sweet, sour, salty, bitter, and umami, each linked to specific receptors on the tongue.

Basilar Membrane

A key structure in the cochlea of the inner ear, responsible for converting sound vibrations into neural signals by moving in response to different frequencies.

Theory of Hearing

A scientific explanation detailing how sound waves are detected by the ear and interpreted by the brain as sounds.

Frequency Theory

A theory of hearing which suggests that the frequency of the auditory nerve's impulses corresponds to the frequency of a sound wave, enabling us to detect pitch.