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Illustration E.5 Leo, Inc. Cost Data Direct materials 10 square feet @ $10/ft. = $100 Direct labor 3 hours @ $30/hr.= $90 Variable manufacturing overhead = $60 Fixed manufacturing overhead $120,000 Anticipated production level 1,000 units Variable selling expense $30/unit sold Fixed selling expense $40,000 Administrative expense $50,000 Selling price $500 per lawn chair Units sold 1,200 Units in beginning inventory 200 Units in ending inventory What are the total variable costs using variable costing? Submit 0 No. The answer is $336,000. The variable cost of goods sold is 1,200 units X $250/unit = $300,000. The $250/unit is the sum of direct materials - $100, direct labor - $90 and variable overhead -$60. The variable selling expenses are $30/unit X 1,200 units = $36,000. The total is $300,000+ $36,000 = $336,000. Click next to continue Previous Next 30 ctv w MacBook Air 888 os : : I 3 4 % 5 & 7 0) 8 W E R T Y