First Buy Company provided the following manufacturing costs for the month of June. From the above information, calculate First Buy's total variable costs.

Question

First Buy Company provided the following manufacturing costs for the month of June.  From the above information, calculate First Buy's total variable costs.

Quizplus · Accepted Answer

Variable costs are the costs that change with the level of production. From the given information, we can calculate total variable costs by adding the costs of direct materials, direct labor, and variable manufacturing overhead. 
Total variable costs = $104,000 + $70,800 + $59,000 = $233,800
Therefore, the best choice is C.

First Buy Company Provided the Following Manufacturing Costs for the Month