Question

The following variable production costs apply to goods made by Stuart Manufacturing Corporation: Item Cost per unit Materials $ 8.00 Labor 9.00 Variable overhead 0.25 Total $ 17.25 Required Determine the total variable production cost, assuming that Stuart makes 13,000, 23,000, or 33,000 units.

Answer 1

Explanation:

The computation of total variable production cost is shown below:

For 13,000 units it would be

= Total per unit cost × number of unit produced

= $17.25 × 13,000 units

= $224,250

For 23,000 units it would be

= Total per unit cost × number of unit produced

= $17.25 × 23,000 units

= $396,750

For 33,000 units it would be

= Total per unit cost × number of unit produced

= $17.25 × 33,000 units

= $569,250