S The following variable produc mheducationcomflowconnectht
S The following variable produc × mheducation.com/flow/connect.html 02-1,2-2 &2-36 The following variable production costs apply to goods made by O\'Brien Manufacturing Corporation: Cost per Unit Materials Labor Variable overhead Total s 6.00 3.00 3.50 $12.50 Required Determine the total variable production cost, assuming that O\'Brien makes 4,000, 8000, or 12.000 units 4,0008,000 12,000 Total variable cost Prev 1015 Next > 5 6 7 8 9
Solution
Unit Produced 4,000 8,000 12,000 Total Variable cost $ 50,000 $ 1,00,000 $ 1,50,000 Working: Variable cost is remain same in per unit. But, when total production chnanges, Total Variable cost is also different for different level. Unit Produced 4,000 8,000 12,000 x Variable cost pe unit $ 12.50 $ 12.50 $ 12.50 Total Variable cost $ 50,000 $ 1,00,000 $ 1,50,000