A Company Reports the Following Information Regarding Its Production Cost

Essay

A company reports the following information regarding its production cost:
$\begin{array}{ll}\text { Units produced } & 22,000 \text { units } \\\text { Direct labor } & \$ 31 \text { per unit } \\\text { Direct materials } & \$ 27 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 2,750,000 \text { in total }\end{array}$ Required: Perform the following independent calculations.
a.Compute total variable overhead cost if the production cost per unit under variable costing is $240.
b.Compute total variable overhead cost if the production cost per unit under absorption costing is $240.