Question: For each variable cost per unit listed below, determine the total variable cost when units produced and sold are 40, 80, and 160 units. Direct
For each variable cost per unit listed below, determine the total variable cost when units produced and sold are 40, 80, and 160 units.
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| Direct materials | $10 |
| Direct labor | 15 |
| Variable overhead | 6 |
| Sales commission | 8 |
Begin by calculating the total variable cost for each variable cost per unit listed, and the total variable cost when sales are 40 units. Then calculate the total variable cost when sales are 80 and 160 units, espectively.
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| Variable Cost | |
| Variable cost per unit |
| at 40 Units |
| Direct materials | $10 |
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| Direct labor | 15 |
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| Variable overhead | 6 |
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| Sales commission | 8 |
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| Total variable cost |
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