Aaron's chairs is in the process of preparing a production cost budget for August. Actual cost in
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Question:
Aaron's chairs is in the process of preparing a production cost budget for August. Actual cost in July for 120 chairs were:
Materials Cost: $4,500
Labor Cost: $2,510
Rent: $1,500
Depreciation : $2,500
Other fixed cost: $3,200
Materials and labor are the only variable costs. If production and sales are budgeted to change to 100 chairs in August, how much is the expected total variable cost on the August budget?
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