For each variable cost per unit listed below determine the t

For each variable cost per unit listed below, determine the total variable cost when units produced and sold are 40, 80, and 160 units.

Direct materials

$10

Direct labor

15

Variable overhead

6

Sales commission

8

Begin by calculating the total variable cost for each variable cost per unit listed, and the total variable cost when sales are 40 units. Then calculate the total variable cost when sales are 80 and 160 units, espectively.

Variable Cost

Variable cost per unit

at 40 Units

Direct materials

$10

Direct labor

15

Variable overhead

6

Sales commission

8

Total variable cost

Solution

Dear student thankyou for using chegg Please refer the following solution and gives thumsup Calculation of variable cost when sales is 40units, 80units, 160units. Particulars Variable cost p.u. Variable cost at 40units 80units 160units Direct Material(A) 10 400 800 1600 (40*10,80*10,160*10) Direct labour(B) 15 600 1200 2400 (40*15,80*15,160*15) Variable Overhead© 6 240 480 960 (40*6,80*6,160*6) Sales Commission(D) 8 320 640 1280 (40*8,80*8,160*8) Tota Variable cost 1560 3120 6240 (A+B+C+D)