Solved: If production and sales are budgeted to change 100 chairs, Accounting Basics

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If production and sales are budgeted to change 100 chairs

Problem

Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were:

Material cost $4790.00

Labor Cost $2560.00

Rent $1500.00

Depreciation $2500.00

Other fixed cost $3200.00

Materials and labor are the only variable costs. If production and sales are budgeted to change 100 chairs in August, how much is the expected total variable cost on the August budget?

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Accounting Basics: If production and sales are budgeted to change 100 chairs

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