Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Pedregon Corporation has provided the following information:
| Cost per Unit | Cost per Period | ||||
| Direct materials | $ | 6.75 | |||
| Direct labor | $ | 3.90 | |||
| Variable manufacturing overhead | $ | 1.55 | |||
| Fixed manufacturing overhead | $ | 15,300 | |||
| Sales commissions | $ | 0.75 | |||
| Variable administrative expense | $ | 0.80 | |||
| Fixed selling and administrative expense | $ | 7,200 | |||
If 4,500 units are sold, the total variable cost is closest to:
Multiple Choice
-
$66,825
-
$80,550
-
$61,875
-
$54,900
Homework Answers
Total variable cost per unit = Direct material per unit + Direct labour per unit + variable manufacturing overhead + sales commission + variable administrative expenses
Total variable cost per unit = 6.75+3.90+1.55+.75+.80
Total variable cost per unit = 13.75
Total variable cost for 4500 unit = 13.75*4500
= $ 61,875
Add Answer to:
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