Solved: If production and sales are budgeted to change to 140, Accounting Basics

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If production and sales are budgeted to change to 140

Question - 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 - $4,820

Labor cost - 2,550

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 change to 140 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 to 140

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Accounting Basics: If production and sales are budgeted to change to 140

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