Gage Company reports the following information for its first year of operations: $\begin{array}{ll}
\text { Units produced this year } & 7,000 \text { units } \
\text { Units sold this year } & 6,500 \text { units } \
\text { Direct materials } & \$ 22 \text { per unit } \
\text { Direct labor } & \$ 30 \text { per unit } \
\text { Variable overhead } & ? \text { in total } \
\text { Fixed overhead } & \$ 56,000 \text { in total }
\end{array}$ 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

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The Answer of Gage Company reports the following information for its first year of operations: $\begin{array}{ll}
\text { Units produced this year } & 7,000 \text { units } \
\text { Units sold this year } & 6,500 \text { units } \
\text { Direct materials } & \$ 22 \text { per unit } \
\text { Direct labor } & \$ 30 \text { per unit } \
\text { Variable overhead } & ? \text { in total } \
\text { Fixed overhead } & \$ 56,000 \text { in total }
\end{array}$ 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

Gage Company Reports the Following Information for Its First Year