A Company Reports the Following Information Regarding Its Production Cost

question 173

Essay

A company reports the following information regarding its production cost:
$\begin{array}{ll}\text { Units produced } & 14,000 \text { units } \\\text { Direct labor } & \$ 13 \text { per unit } \\\text { Direct materials } & \$ 3 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 56,000 \text { in tota }\end{array}$

Required: Perform the following independent calculations.
a.Compute total variable overhead cost if the production cost per unit under variable costing is $73.
b.Compute total variable overhead cost if the production cost per unit under absorption costing is $73.

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Definitions:

Grocery Item

A product that is typically sold in a supermarket or grocery store, ranging from food to household supplies.

Development

Refers to the process of growth, progress, or improvement in a particular area, such as personal, social, or economic development.

Training

The process of enhancing the skills, capabilities, and knowledge of employees for doing a particular job.

Future-oriented

Relates to strategies or perspectives that focus on anticipations, trends, and planning for long-term future developments.