A Company Reports the Following Information for Its First Year

question 20

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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Definitions:

Three-Month Period

A timeframe equivalent to a quarter of a year, often used in financial reporting and measurement.

Charity Drive

A campaign organized to raise funds or collect goods for charitable purposes.

Donation

Voluntary giving of resources such as money, goods, or time to help individuals, organizations, or communities.

Total Purchase Price

The complete cost of acquiring an asset, including the price of the asset plus any additional fees or expenses involved in the purchase.