Question

Lagle Corporation has provided the following information:

	Cost per Unit			Cost per Period
Direct materials	$	4.55
Direct labor	$	3.30
Variable manufacturing overhead	$	1.25
Fixed manufacturing overhead				$	11,000
Sales commissions	$	1.30
Variable administrative expense	$	0.35
Fixed selling and administrative expense				$	4,200

If 6,000 units are sold, the total variable cost is closest to:

Answer 1

Ans-If 6,000 units are sold, the total variable cost is closet to be as follow:-

Direct materials	$4.55
Direct labor	$3.30
Variable manufacturing overhead	$1.25
Sales commission	$1.30
Variable administrative expenses	$0.35
Total variable cost per unit	$10.75
Units sold	6,000
Total variable cost (6,000units *$10.75)	$64,500

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