Aaron's chairs are in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were:
- Materials cost
- $4,650
- Labor cost
- 2,680
- 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 increase to 140 chairs in August, how much is the expected total variable cost on the August budget?
Note: Explain in detail.