Table 13-11
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.

-Refer to Table 13-11.What is the average variable cost for the month if 6 instructional modules are produced?
A) $180.00
B) $533.33
C) $700.00
D) $713.33

Question

Table 13-11
Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month.
 
-Refer to Table 13-11.What is the average variable cost for the month if 6 instructional modules are produced?
A) $180.00 
B) $533.33 
C) $700.00 
D) $713.33

Quizplus · Accepted Answer

To calculate the average variable cost, we need to add up all the variable costs for producing 6 instructional modules, which are the direct labor, direct materials, and factory overhead costs. From the table, we can see that for producing 6 modules, the total variable cost is $3,200.

Then, we divide the total variable cost by the number of modules produced to get the average variable cost per module:

$3,200 / 6 modules = $533.33

Therefore, the average variable cost for the month if 6 instructional modules are produced is $533.33, which is option B.

Table 13-11 Teacher's Helper Is a Small Company That Has a Subcontract