Items from Sap Company's budget for March in which 2,100 units were produced and sold appear below: $\begin{array}{lr}
\text { Direct materials } & \$ 12,000 \
\text { Indirect materials\_variable } & 2,000 \
\text { Supervisor salaries } & 10,000 \
\text { Depreciation on factory equipment } & 8,000 \
\text { Direct labour } & 7,000 \
\text { Property taxes on factory } & 3,000 \
\text { Total }&\$42,000
\end{array}$ At 2,200 units, how much are budgeted variable manufacturing costs?
A)$22,000
B)$43,000
C)$21,000
D)$19,905

Question

Quizplus · Accepted Answer

Variable manufacturing costs are direct materials, indirect materials, and direct labor. At 2,200 units, the budgeted variable manufacturing costs are $12,000 + $2,000 + $7,000 = $21,000.

Items from Sap Company's Budget for March in Which 2,100