What are parallel lines and perpendicular lines
2 answers:
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Answer:
$102,000
Step-by-step explanation:
As provided we have,
Variable cost components
Direct material = $6.10
Direct labor = $3.60
Variable manufacturing overhead = $1.40
Sales Commission = $1.10
It is assumed that sales commission is based on number of units and therefore, will be charged as variable cost and not the fixed cost.
Variable administrative expense = $0.55
As for 8,000 units this entire variable cost components will have same cost.
As the fixed cost is based on 10,000 units it will differ per unit on 8,000 units but the variable cost component will not change per unit.
Thus, total variable cost for 8,000 units = ($6.10 + $3.60 + $1.40 + $1.10 + $0.55) 8,000 = $102,000