Variable cost per labor-hour is $8.50.Fixed cost is $10,500.Calculate the total cost for 350 labor hours.Machine hours during the period are 50.
A) $10,925
B) $13,475
C) $13,900
D) $3,400

Question

Quizplus · Accepted Answer

Total cost = (Variable cost per labor-hour x labor hours) + Fixed cost 
Total cost = ($8.50 x 350) + $10,500 
Total cost = $2,975 + $10,500 
Total cost = $13,475

Therefore, the correct answer is B, $13,475.

Variable Cost Per Labor-Hour Is $8