Respuesta :
Answer:
$92,050
Explanation:
The total variable cost is the sum of all the costs that are dependent on the level of activity (i.e volume of production and sales). These cost include the sales commission, variable administrative expenses, Variable manufacturing overhead, as well as the direct material and direct labor costs.
Hence total variable cost per unit
= $6.65 + $3.70 + $1.45 + $0.65 + $0.70
= $13.15
Given that the company sold 7000 units, the total variable cost is closest to
= $13.15 * 7000
= $92,050
Answer:
$92,050.
Explanation:
Given:
Cost per Unit Cost per Period
Direct materials $ 6.65
Direct labor $ 3.70
Variable manufacturing overhead $ 1.45
Fixed manufacturing overhead $ 25,900
Sales commissions $ 0.65
Variable administrative expense $ 0.70
Fixed selling and administrative expense $ 4,800
Therefore, we have:
Total variable cost = ($6.65 + $3.70 + $1.45 + $0.65 + $0.70) * 7,000 = $13.15 * 7,000 = $92,050.
Therefore, the total variable cost is closest to $92,050.
