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.
$$\begin{array} { l l } \text { Units produced this year } & 750,000 \text { units } \\\text { Units sold this year } & 740,000 \text { units } \\\text { Direct materials } & \$ 18.30 \text { per unit } \\\text { Direct labor } & \$ 14.20 \text { per unit } \\\text { Variable overhead } & ? \text { in total } \\\text { Fixed overhead } & \$ 4,500,000 \text { in total }\end{array}$$
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