Gage Company reports the following information for its first year of operations: 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

Question

Gage Company reports the following information for its first year of operations:  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

Quizplus · Accepted Answer

$63 = DM + DL + VOH
$63 = $22 + $30 + VOH
VOH = $11 per unit
$11 per unit × 7,000 units = $77,000

Gage Company Reports the Following Information for Its First Year