Lagle Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Lagle Corporation has provided the following information:
| Cost per Unit | Cost per Period | ||||
| Direct materials | $ | 5.15 | |||
| Direct labor | $ | 3.70 | |||
| Variable manufacturing overhead | $ | 1.30 | |||
| Fixed manufacturing overhead | $ | 6,300 | |||
| Sales commissions | $ | 1.60 | |||
| Variable administrative expense | $ | 0.60 | |||
| Fixed selling and administrative expense | $ | 3,600 | |||
If 3,500 units are sold, the total variable cost is closest to:
Homework Answers
Variable cost per unit=Direct materials+Direct labor+Variable manufacturing overhead+Sales commissions+Variable administrative expense
=5.15+3.7+1.3+1.6+0.6=$12.35 per unit
Total variable costs=$12.35*3500 units
=$43225
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