Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: If 8,000 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.) Total variable cost
Expert Answer
Per unit | for 8000 units | |
Direct material | $ 5.60 | $ 44,800 |
Direct labour | $ 3.10 | $ 24,800 |
Variable manufacturing overhead | $ 1.40 | $ 11,200 |
Sales commission | $ 1.20 | $ 9,600 |
Variable administrative expenses | $ 0.45 | $ 3,600 |
Total variable cost | $ 11.75 | $ 94,000 |