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

Question

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

Quizplus · Accepted Answer

The Answer of Gage Company reports the following information for its first year of operations. 
$$\begin{array} { l l } 
\text { Units produced this year } & 7,000 \text { units } \
\text { Units sold this year } & 6,500 \text { units } \
\text { Direct materials } & \$ 22 \text { per unit } \
\text { Direct labor } & \$ 30 \text { per unit } \
\text { Variable overhead } & ? \text { in total } \
\text { Fixed overhead } & \$ 56,000 \text { in total }
\end{array}$$
If the company's cost per unit of finished goods using variable costing is $63, what is total variable overhead?

Gage Company Reports the Following Information for Its First Year