Closet Links Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $ 132 comma 000 Direct materials cost 83 comma 000 Equipment depreciation (straightminus line) 20 comma 000 Factory insurance 18 comma 000 Factory manager's salary 10 comma 000 Janitor's salary 3 comma 000 Packaging costs 19 comma 800 Property taxes 16 comma 000 From the above information, calculate Closet Link's total variable costs.

Question

Business

Carey

16 January, 05:29

Closet Links Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $ 132 comma 000 Direct materials cost 83 comma 000 Equipment depreciation (straightminus line) 20 comma 000 Factory insurance 18 comma 000 Factory manager's salary 10 comma 000 Janitor's salary 3 comma 000 Packaging costs 19 comma 800 Property taxes 16 comma 000 From the above information, calculate Closet Link's total variable costs.

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Carmelo Luna · Answer 1

Closet Link's total variable costs is $234,800

Explanation:

Given:

Direct labor cost = $ 132,000

Direct materials cost = $83,000

Equipment depreciation (straight- line) = $20,000

Factory insurance = $18,000

Factory manager's salary = $10,000

Janitor's salary = $3,000

Packaging costs = $19,800

Property taxes = $16,000

Total variable costs = Direct materials cost + Direct labor cost + Packaging costs

= $83,000 + $132,000 + $19,800 = $234,800