Harrison Carpets incurred the following costs for March when 3,000 square feet of carpet were produced and sold:

•………$18,500 for nylon thread used on carpet
•………$5,000 for scotch guard for carpet
•………$7,200 for jute backing to reinforce the carpet
•………$6,800 for glue to be used in the manufacturing process
•………$13,000 for insurance (half for administrative activities, half for production activities)
•………$9,000 for production employees’ wages
•………$6,500 for rent and utilities in the factory

How much are total variable costs if 3,500 square feet of carpet are produced and sold in April?

$46,500

$77,000

$54,250

$43,750

Answer rating: 100% (QA)

To calculate the total variable costs we need to identify the costs that vary with the level ... View the full answer