Question

A company reports the following information for its first year of operations:
Units produced this year ? units
Units sold this year 1,500 units
Direct materials $9 per unit
Direct labor $5 per unit
Variable overhead $7 per unit
Fixed overhead $24,000 in total
If the company's cost per unit of finished goods using absorption costing is $27, how many units were produced?
A. 4,000 units.
B. 3,600 units.
C. 1,846 units.
D. 2,667 units.
E. 2,000 units.

Answer

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