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 |
$4,560 |
Labor Cost |
$2,560 |
Rent |
$1,500 |
Depreciation |
$2,500 |
Other fixed costs |
$3,200 |
Materials and labor are the only variable costs. If production and sales are budgetedto change to 110 chairs in August, how much is the expected total variable cost on the August budget?
Please show your work in detail.