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A Company Reports the Following Information Regarding Its Production Cost

question 160

Essay

A company reports the following information regarding its production cost.
Required: Perform the following independent calculations.  Units produced 22,000 units  Direct labor $31 per unit  Direct materials $27 per unit  Variable overhead ? in total  Fixed overhead $2,750,000 in total \begin{array} { l l } \text { Units produced } & 22,000 \text { units } \\\text { Direct labor } & \$ 31 \text { per unit } \\\text { Direct materials } & \$ 27 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 2,750,000 \text { in total }\end{array}
(a.) Compute total variable overhead cost if the production cost per unit under variable costing is $240.
(b.) Compute total variable overhead cost if the production cost per unit under absorption costing is $240.

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