Question - 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?
$16,950
$9,750
$17,325
$18,750