Aarons chairs is in the process of preparing a production, Finance Basics

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Aarons chairs is in the process of preparing a production

Question: Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were: Material cost $4,530 Labor cost $2,760 Rent $1,500 Depreciation $2,500 Other fixed cost $3,200 Material and labor are the only variable costs. If production and sales are budgeted to change to 100 chairs in August, how much is the expected total variable cost on the August budget?

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