Question

Waldhauser Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $ 6.10 $ 3.45 $ 1.75 $ 3.30 $ 0.75 $ 0.60 $ 1.50 $ 0.45 If 6,000 units are sold, the total variable cost is closest to: Multiple Choice $79,500 $107,400 $67,800 $87,600

Answer 1

　

Solution: $79500

Working::

Direct materials	6.10
Direct labor	3.45
Variable manufacturing overhead	1.75
Sales commissions	1.50
Variable administrative expense	0.45
Variable cost per unit sold	13.25

Variable cost per unit sold	13.25
Number of units sold	6000
Total variable costs (6000 units * $13.25)	79500