Question - Serta Carpet, which manufactures carpet, incurred the following costs for March when 2,600 yards of carpet were produced and sold:
- $12,200 for nylon thread used on carpet
- $16,000 for scotch guard for carpet
- $4,000 for jute backing to reinforce the carpet
- $5,000 for glue to be used in the manufacturing process
- $21,000 for insurance (half for administrative activities, half for production activities)
- $7,000 for production employee's wages
- $10,000 for rent (60% for the production facility, 40% for the administrative offices)
How much are total variable costs if 2,200 yards of carpet are produced and sold in April?
$44,200
$37,400
$63,631
$55,169