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Toledo Toy Company incurred the following costs during 20x1: Direct Materials 5,000,000 Direct Labor 3,500,000 Manufacturing Overhead Utilities (primarily electricity) 250,000 Depreciation Plant and Equipment

Toledo Toy Company incurred the following costs during 20x1:

Direct Materials 5,000,000
Direct Labor 3,500,000
Manufacturing Overhead
Utilities (primarily electricity) 250,000
Depreciation Plant and Equipment 350,000
Insurance 260,000
Supervisory Salary 470,000
Property Taxes 330,000
Selling Cost:
Advertising 315,000
Sales Commission 145,000
Administrative Costs:
Salaries of top management 580,000
Office Supplies 70,000
Depreciation on Building and Equipment 140,000

The company sold all of its products manufactured during the year. Depreciation is on a straight-line basis. During 20x1, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x2 are slightly better. The marketing manager, forecasts a 30 percent growth in sales over the 20x1 level.

TOTAL VARIABLE COST in 20x1 amount to _________________.

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