Question

Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.45 Direct labor $ 3.30 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 16,500 Sales commissions $ 0.45 Variable administrative expense $ 0.50 Fixed selling and administrative expense $ 4,200 If 5,000 units are sold, the total variable cost is closest to:

Answer 1

Answer:

$59,750

Explanation:

Total variable per unit = Direct material pet unit + direct labor per unit + variable manufacturing overhead + sales commission + variable administrative expenses

= $6.45 + $3.3 + $1.25 + $0.45 + $0.5

= $11.45

Total variable cost for 5,000 units

= $11.95 × 5,000

= $59,750