Homework SourseCarpet Renewal dyes carpets for residential customers The co
Carpet Renewal dyes carpets for residential customers. The company is interested in estimating fixed and variable costs. The following data are available for the month of June when 420 carpets were dyed:
Using account analysis, how much is estimated variable cost per carpet?
| Office rent | $ 1,250 | |
| Depreciation - equipment | 900 | |
| Cleaning supplies | 5,140 | |
| Hourly wages | 11,000 | |
| Transportation (variable) | 3,600 | |
| Owner’s salary | 3,100 | |
| Total | $24,990 |
Solution
Calculate variable cost per carpet :
so answer is c) $47.00
| Cleaning supplies | 5140 |
| Hourly wages | 11000 |
| Transporatation (variable) | 3600 |
| Total variable cost | 19740 |
| Carpets | 420 |
| Variable cost per carpets | 47.00 |
