Clear Company Reports the Following Information for Its First Year

question 109

Multiple Choice

Clear Company reports the following information for its first year of operations.
$$\begin{array} { l l } \text { Units produced this year } & 50,000 \text { units } \\\text { Units sold this year } & 49,000 \text { units } \\\text { Direct materials } & \$ 7 \text { per unit } \\\text { Direct labor } & \$ 3 \text { per unit } \\\text { Variable overhead } & \$ 210,000 \text { in total } \\\text { Fixed overhead } & ? \text { in total }\end{array}$$
If the company's cost per unit of finished goods using absorption costing is $19.30, what is total fixed overhead?

• A) $350,000
• B) $255,000
• C) $150,000
• D) $249,900
• E) $147,000

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Definitions:

Pap Smear

A screening test used to detect cervical cancer and precancerous conditions by collecting cells from the cervix for examination.

Cervical Cells

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Behavior characterized by the urge to prepare one's home for a new arrival, commonly observed in the latter stages of pregnancy.

Labor

The process of childbirth from the start of uterine contractions to delivery.