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Question
Magenta Inc. reports the following information for the current year which is its first year of operations:
| Units produced this year | 750,000 units |
| Units sold this year | 740,000 units |
| Direct materials | $18.30 per unit |
| Direct labor | $14.20 per unit |
| Variable overhead | ? in total |
| Fixed overhead | $4,500,000 in total |
If the companys 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
Answer
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