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Pedregon Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions O $60,000 $48,000 $53,800 $71,600 Cost per Unit O $6.70 $ 3.80 $1.50 Variable administrative expense Fixed selling and administrative expense If 4,000 units are sold, the total variable cost is closest to: $0.70 $0.75 Cost per Period $ 15,200 $6,800

Pedregon Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions O $60,000 $48,000 $53,800 $71,600 Cost per Unit O $6.70 $ 3.80 $1.50 Variable administrative expense Fixed selling and administrative expense If 4,000 units are sold, the total variable cost is closest to: $0.70 $0.75 Cost per Period $ 15,200 $6,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 13?
84 TI-SmartVi for the T...s QUESTION 13 Pedregon Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Cost per Unit $6.70 $ 3.80 $1.50 $60,000 $48,000 $53,800 $71,600 $0.70 $0.75 Variable administrative expense Fixed selling and administrative expense If 4,000 units are sold, the total variable cost is closest to: Cost per Period $ 15,200 $6,800
Transcribed Image Text:84 TI-SmartVi for the T...s QUESTION 13 Pedregon Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Cost per Unit $6.70 $ 3.80 $1.50 $60,000 $48,000 $53,800 $71,600 $0.70 $0.75 Variable administrative expense Fixed selling and administrative expense If 4,000 units are sold, the total variable cost is closest to: Cost per Period $ 15,200 $6,800
Expert Solution
Step 1 Description

According to the given question, we are required to compute the total variable cost at the activity level of 4000 units.

Variable cost:

Variable costs refer to the cost that varies in respect of the production volume or the value of the services provided. It is fixed in terms of per unit price. 

 

 

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