Determining total variable cost
The following variable production costs apply to goods made by Zell Manufacturing Corporation.
|
Item |
Cost per Unit |
|
Materials |
$6.00 |
|
Labor |
2.50 |
|
Variable overhead |
0.20 |
|
Total |
$8.70 |
Required
Determine the total variable production cost, assuming that Zell makes 5,000, 15,000, or 25,000 units.