Search
Ask a question
0

If 12500 units are sold what is the total amount of variable costs related to the units sold

Direct materials= $6
Direct labor= $3.50
Variable manufacturing overhead= $1.50
Fixed manufacturing overhead= $4.00
Fixed selling expense= $3.00
Fixed administrative expense =$2
Sales commissions =$1
Variable administrative expense =$0.50

1 Answer by Expert Tutors

Tutors, sign in to answer this question.
Serge M. | Professor of Accounting, retired. Ph.D., CPAProfessor of Accounting, retired. Ph.D.,...
5.0 5.0 (7 lesson ratings) (7)
0
total cost = Fixed cost + Variable cost
 
Variable cost = 6 + 3.50 + 1.50 + 1 + .50 = 12.50
 
Total variable cost = $12.5 * 12,500 = $15,625