A Company Reports the Following Information for Its First Year

Multiple Choice

A company reports the following information for its first year of operations: $\begin{array}{ll}\text { Units produced this year } & 650 \text { units } \\\text { Units sold this year } & 500 \text { units } \\\text { Direct materials } & \$ 750 \text { per unit } \\\text { Direct labor } & \$ 1,000 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 308,750 \text { in total }\end{array}$ If the company's cost per unit of finished goods using variable costing is $2,375, what is total variable overhead?

A) $237,500
B) $75,000
C) $312,500
D) $406,250
E) $97,500