Expected total variable cost on the budget


Raron's Rockers is in the process of preparing a production cost budget for August. Actual costs in July for 120 rocking chairs were:

Materials cost

$4,800

Labor cost

3,000

Rent

1,500

Depreciation

2,500

Other fixed costs

3,200

Total

$15,000

Materials and labor are the only variable costs. If production and sales are budgeted to increase to 150 chairs in August, how much is the expected total variable cost on the August budget?

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Finance Basics: Expected total variable cost on the budget
Reference No:- TGS0551173

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