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A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows: Amount
A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows:
Amount per Unit | |
---|---|
Direct materials | $ 7.00 |
Direct labor | $ 4.00 |
Variable manufacturing overhead | $ 1.50 |
Fixed manufacturing overhead | $ 5.00 |
Fixed selling expense | $ 3.50 |
Fixed administrative expense | $ 2.00 |
Sales commissions | $ 1.00 |
Variable administrative expense | $ 0.50 |
What is the total amount of variable cost incurred if the company produces and sells 11,900 units?
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