Aarons chairs is in the process of preparing a production cost budget
Aarons chairs is in the process of preparing a production cost budget
for August. Actual costs in July for 120 chairs were:
Materials cost $4,550
Labor cost 2,540
Rent 1,400
Depreciation 2,500
Other fixed costs 3,200
Materials and labor care the only variable costs. If production and sales are budgeted to change to 120 chairs in August, how much is the expected total variable cost on the August budget?
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