Gage Company Reports the Following Information for Its First Year

question 155

Multiple Choice

Gage Company reports the following information for its first year of operations.
$$\begin{array} { l l } \text { Units produced this year } & 7,000 \text { units } \\\text { Units sold this year } & 6,500 \text { units } \\\text { Direct materials } & \$ 22 \text { per unit } \\\text { Direct labor } & \$ 30 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 56,000 \text { in total }\end{array}$$
If the company's cost per unit of finished goods using variable costing is $63, what is total variable overhead?

• A) $21,000
• B) $71,500
• C) $77,000
• D) $19,500
• E) $16,590

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Definitions:

One Big Theory

A hypothetical or proposed unified theory that attempts to explain a wide array of psychological phenomena or human behavior under a single, comprehensive framework.

Psychological Triad

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Pigeonholing

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Psychological Triad

This refers to the three major aspects of human psychology: thoughts, feelings, and behaviors.