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11 January, 11:08

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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  1. 11 January, 14:50
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    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
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