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Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, then how much is
Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, then how much is the expected total variable cost on the August budget?
Q1.237: Flora Generators is preparing a production cost budget for August. The production of 60 generators incurred the following actual costs in July: Materials cost 5,00 Labor cost Rent Depreciation1,700 Other fixed costs 4,600 Total 2,600 1,200 $15,300 Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, then how much is the expected total variable cost on the August budget? A) $9,100 B $15,300 C) $16,600 D $17,850Step by Step Solution
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