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Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units
Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production.
Average Cost per Unit | |
Direct Materials | $12 |
Direct Labor | 10 |
Indirect Materials | 2 |
Fixed manufacturing overhead | 4 |
Variable manufacturing overhead | 3 |
Fixed selling and administrative expense | 8 |
Variable Sales commissions | 25 |
If 13,500 units are produced, what is the total variable cost?
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