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

question 83

Multiple Choice

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

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Definitions:

Dollar Fill Rate

A metric in supply chain management that measures the value of goods received by a customer against the total value of the order placed.

Item Fill Rate

A supply chain metric that measures the percentage of customer or production orders satisfied from stock at hand.

Firm's Flexibility

The ability of a business to adapt quickly and efficiently to changes in the market environment, customer demands, or production needs.

Responsiveness

The ability to quickly and effectively respond to customer needs, complaints, and market changes, contributing to customer satisfaction and competitive advantage.