Solved

Rom Generators Is in the Process of Preparing a Production

Question 93

Multiple Choice

Rom Generators is in the process of preparing a production cost budget for August.Actual costs in July for the production of 60 generators were:  Materials cost 5,200 Labor cost 2,600 Rent 1,200 Depreciation 1,700 Other fixed costs 4,600 Total $15,300\begin{array}{lr}\text { Materials cost } & 5,200 \\\text { Labor cost } & 2,600 \\\text { Rent } & 1,200 \\\text { Depreciation } & 1,700 \\\text { Other fixed costs } & 4,600\\\text { Total }&\$15,300\end{array} Materials and labor are the only variable costs.If production and sales are budgeted to increase to 70 generators in August, how much is the expected total variable cost on the August budget?


A) $17,850
B) $16,600
C) $9,100
D) $15,300

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents