Question

Milton Company reports the following information for the current year:
Units produced this year 45,000 units
Units sold this year 53,000 units
Direct materials $5 per unit
Direct labor $2 per unit
Variable overhead $270,000 in total
Fixed overhead ? in total
If the company's cost per unit of finished goods using absorption costing is $18, what is total fixed overhead?
A. $225,000
B. $180,000
C. $270,000
D. $315,000
E. $720,000

Answer

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