Question

Gage Company reports the following information for its first year of operations: Units produced this year 7,000 units Units sold this year 6,500 units Direct materials $ 22 per unit Direct labor $ 30 per unit Variable overhead ? in total Fixed overhead $ 56,000 in total If the company's cost per unit of finished goods using variable costing is $63, what is total variable overhead?

Answer 1

Answer:

$11= unitary variable overhead

Explanation:

Giving the following information:

Direct materials $ 22 per unit

Direct labor $ 30 per unit

Variable overhead ?

The company's cost per unit of finished goods using variable costing is $63.

Under the variable costing method, the unitary cost of production is calculated using the direct material, direct labor, and variable manufacturing overhead.

unitary cost= direct material + direct labor + unitary variable overhead

63= 22 + 30 + x

11= unitary variable overhead