Determining total variable cost
The following variable production costs apply to goods made by Watson Manufacturing Corporation.
Item | Cost per Unit |
Materials | $5.00 |
Labor | 2.50 |
Variable overhead | 0.25 |
Total | $7.75 |
Required
Determine the total variable production cost, assuming that Watson makes 5,000, 15,000, or 25,000 units.
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