A Company Reports the Following Information for Its First Year

question 171

Multiple Choice

A company reports the following information for its first year of operations:
$$\begin{array} { l l } \text { Units produced this year } & 43,000 \text { units } \\\text { Units sold this year } & 39,000 \text { units } \\\text { Direct materials } & \$ 0.57 \text { per unit } \\\text { Direct labor } & \$ 0.83 \text { per unit } \\\text { Variable overhead } & \$ 26,660 \text { in total } \\\text { Fixed overhead } & ? \text { in total }\end{array}$$
If the company's cost per unit of finished goods using variable costing is $2.02,what is the amount of total fixed overhead?

• A) $26,660
• B) $35,690
• C) $24,510
• D) Some other amount
• E) Cannot be determined from the given data.

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