Question

Closet Links Clothing Company provided the following manufacturing costs for the month of June. Direct labor...

Closet Links Clothing Company provided the following manufacturing costs for the month of June.

Direct labor cost

$ 132 comma 000$132,000

Direct materials cost

82 comma 00082,000

Equipment depreciation

​(straightminus−​line)

21 comma 00021,000

Factory insurance

16 comma 00016,000

Factory​ manager's salary

12 comma 00012,000

​Janitor's salary

5 comma 0005,000

Packaging costs

18 comma 40018,400

Property taxes

15 comma 00015,000

From the above​ information, calculate Closet​ Link's total variable costs.

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Answer #1

Variable costs

= Direct labor + Direct materials + Packing cost

= 132,000 + 82,000 + 18,400

= 232,400

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