Magenta Inc If the Company's Cost Per Unit of Finished Goods Using

Multiple Choice

Magenta Inc.reports the following information for the current year which is its first year of operations: $\begin{array}{ll}\text { Units produced this year } & 750,000 \text { units } \\\text { Units sold this year } & 740,000 \text { units } \\\text { Direct materials } & \$ 18.30 \text { per unit } \\\text { Direct labor } & \$ 14.20 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 4,500,000 \text { in total }\end{array}$ If the company's cost per unit of finished goods using absorption costing is $39.75, what is total variable overhead?

A) $925,000
B) $877,500
C) $937,500.
D) $865,800
E) $5,437,500