Aaron’s chairs is in the process of preparing a production cost budget
Aaron’s chairs is in the process of preparing a production cost budget
for august. Actual costs in July for the 120 charis were:
Materials Cost $4,580
Labor Cost 2,620
Rent 1,500
Depreciation 2,500
Other fixed Costs 3,200
Materials and labor are the only variable costs. If production and sales are budgeted to change to 150 chairs in August, how much is the expected total variable cost on the august budget?