Question
New equipment being considered by the Johnny Pickles Brewing Company is projected to increase current sales from $12,836 to $14,141. Direct labor resulting from
New equipment being considered by the Johnny Pickles Brewing Company is projected to increase current sales from $12,836 to $14,141. Direct labor resulting from increased production will go from $4,857 to $5,766. Direct material will increase from $3,416 to $4,004. Variable overhead is expected to stay the same at $981. The fixed expenses are expected to stay the same at $1,657. What are the total differential variable overhead costs for the Johnny Pickles Brewing Company if it decides to purchase the new equipment?
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