Question

A company reports the following information for its first year of operations: Units produced this year 43,000 units Units sold this year 39,000 units Direct materials $ 0.57 per unit Direct labor $ 0.83 per unit Variable overhead $ 26,660 in total Fixed overhead ? in total If the company's cost per unit of finished goods using variable costing is $2.02, what is the amount of total fixed overhead?

Answer 1

Answer: 0

Explanation: Fixed overhead is the amount of overhead that remains fixed and is independent of the level of output produced by the entity.

FIXED OVERHEAD PER UNIT =  TOTAL OVERHEAD PER UNIT - DIRECT MATERIALS PER UNIT  - DIRECT LABOR PER UNIT  - VARIABLE OVERHEAD PER UNIT

FIXED OVERHEAD = $2.02 - $0.57 - $0.83 - $0.62  = 0

so, the company do not have any fixed overhead .