Clear Company reports the following information for its first year of operations: If the company's cost per unit of finished goods using absorption costing is $19.30, what is total fixed overhead?
A) $350,000
B) $255,000
C) $150,000
D) $249,900
E) $147,000

Question

Clear Company reports the following information for its first year of operations:  If the company's cost per unit of finished goods using absorption costing is $19.30, what is total fixed overhead?
A) $350,000 
B) $255,000 
C) $150,000 
D) $249,900 
E) $147,000

Quizplus · Accepted Answer

$19.30 = DM + DL + VOH + FOH
$5.10 per unit × 50,000 units = $255,000
$19.30 = $14.20 + FOH
FOH = $5.10 per unit
$5.10 per unit × 50,000 units = $255,000

Clear Company Reports the Following Information for Its First Year