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.

Question

Hugo Quinn

Business

11 March, 05:26

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.

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Capone · Answer 1

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