Question

Closet Links Clothing Company provided the following manufacturing costs for the month of June Direct labor cost Direct materials cost $140,000 81,000 (straight-line) Factory insurance Factory managers salary Janitors salary Packaging costs Property taxes From the above information, calculate Closet Links total variable costs. 22,000 12,000 11,400 5,000 19,000 16,000 OA. $221,000 OB. $66,400 O C. $306,400 O D. $240,000

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Answer #1

Total variable costs = Direct materials cost + Direct labor cost + Packaging costs

= $81,000 + $140,000 + $19000 = $240,000

OPTION : D ($240,000)

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