Determining the total variable costs


Serta Carpet, which manufactures carpet, incurred the following costs for March when 2,600 yards of carpet were produced and sold:

• $12,200 for nylon thread used on carpet

• $16,000 for scotch guard for carpet

• $4,000 for jute backing to reinforce the carpet

• $5,000 for glue to be used in the manufacturing process

• $21,000 for insurance (half for administrative activities, half for production activities)

• $7,000 for production employee's wages

• $10,000 for rent (60% for the production facility, 40% for the administrative offices)

How much are total variable costs if 2,200 yards of carpet are produced and sold in April?

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Finance Basics: Determining the total variable costs
Reference No:- TGS0551164

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