Aaron’s chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were:
Aaron’s chairs is in the process of preparing a production cost budget
for August. Actual costs in July for 120 chairs were:
Materials cost_____$4680
Labor cost________2730
Rent____________ 1500
Depreciation_______2500
Other Fixed costs____3200
Materials and labor are the only variable costs. If the production and sales are budgeted to change to 130 chairs in August, how much is the expected total variable cost on the August budget?
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