In “End of Unit 2 Assessment” the last question is:
From the Departmental Monthly Production Cost Report, what are the total variable cost for May?
And the possible answers are:
By guess I chose just any answer and it was correct one. And the feedback was “CORRECT FEEDBACK: Exactly! This is the total overhead.”
First of all I can’t connect together “variable costs” and “overhead” (as far as I know, overhead can be both), and second, I can’t figure out how to arrive to the number it was given as a correct answer.
I’d appreciate the explanation. Thank you