Answer:
Total fixed overhead= $255,000
Explanation:
Giving the following information:
Units produced this year 50,000 units
Units sold this year 49,000 units
Direct materials $7 per unit
Direct labor $3 per unit
Variable overhead $210,000 in total
Fixed overhead= ?
The company's cost per unit of finished goods using absorption costing is $19.30
Under absorption costing the fixed overhead gets allocated to the cost per unit.
Cost per unit= direct material + direct labor + variable overhead + fixed overhead
19.30= 7 + 3 + 210,000/50,000 + unitary fixed overhead
19.3= 7 + 3 + 4.2 + unitary fixed overhead
5.1= unitary fixed overhead
Total fixed overhead= 5.1*50,000= $255,000
