The following variable production costs apply to goods made by Campbell Manufacturing...
Question:
The following variable production costs apply to goods made by Campbell Manufacturing Corporation:
| Item | Cost per unit |
|---|---|
| Materials | $11 |
| Labor | 7.50 |
| Variable overhead | 0.25 |
| Total | $18.75 |
Required:
Determine the total variable production cost, assuming that Campbell makes 6,000, 16,000, or 26,000 units.
Manufacturing Costs:
The manufacturing costs of a firm can be categorized into fixed costs and variable costs on the basis of their variability with the production volume. The variable costs can be bifurcated into direct costs and indirect costs.
Answer and Explanation: 1
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View this answer| Units produced | Variable production cost per unit | Total variable production cost |
|---|---|---|
| 6,000 | $18.75 | = 6,000 * $18.75 = $112,500 |
| 16,000 | $18.75 | = 16,000 *... |
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Variable Cost: Definition, Formula & Examples
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Chapter 23 / Lesson 7
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Understand variable cost in business. Learn the definition of variable cost, the variable cost formula, and how to use the formula to calculate the variable cost.
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