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:

Mentally Ill

Individuals suffering from mental health disorders that affect their mood, thinking, and behavior.

Madness

An outdated term often used historically to describe severe mental illness or behaviour perceived as wildly irrational, not commonly used in clinical contexts due to its pejorative implications.

Affirmative Action

Policies or measures designed to increase opportunities for underrepresented groups in areas such as employment and education, as a means to address past discrimination.

Constitutional

Refers to laws, principles, or systems that constitute a country's legal foundation and govern its political and institutional operations.