Lagle Corporation has provided the following information: Cost per Unit Cost per

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 $ 4200? If 6000 units are sold, the total variable cost is closest to:

Lagle Corporation has provided the following information: Cost per Unit $4.55 $3.30 $ 1.25 Period Direct materials Direct labor Variable manufacturing overhead 11,00 Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense $ 1.30 $ 0.35 4200 If 6000 units are sold, the total variable cost is closest to:

Explanation / Answer

Calculate total variable cost :

Direct material (6000*4.55) 27300 Direct labour (6000*3.30) 19800 Variable manufacturing overhead (6000*1.25) 7500 Sales commission (6000*1.3) 7800 Variable administrative expense (6000*.35) 2100 Total variable cost 64500

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