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Chapter 20: Q21E (page 1125)

Question: Determining total variable cost

For each variable cost per unit listed below, determine the total variable cost when units produced and sold are 25, 50, and 100 units.

Direct materials $ 40

Direct labor 80

Variable overhead 9

Sales commission 12

Short Answer

Expert verified

Answer

The total variable cost for 25 units is $3,525 per unit, for 50 units is $7,050 , for 100 units is $14,100 .

Step by step solution

01

Calculation of total variable cost per unit

Particulars

Amount

Direct materials

$40

Direct labor

$80

Variable overhead

$9

Sales commission

$12

Total variable cost per unit

$141

02

 Step 2: Calculation of fixed cost per unit

25

50

100

Variable cost per unit

$141

$141

$141

× No. of units

25

50

100

Fixed cost per unit

$3,525

$7,050

$14,100

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