Question

What was the total variable labor cost last month?

a) $10,000
b) $15,000
c) $20,000
d) $25,000

Answer 1

The total variable labor cost last month can be determined by multiplying the wage rate by the quantity of labor supplied at that wage rate. We sum the calculated values for each wage rate to find the total cost.

Step-by-step explanation:

The total variable labor cost last month can be determined by multiplying the wage rate by the quantity of labor supplied at that wage rate. Based on the given information, the quantity labor supplied at each wage rate is as follows:

1. At $8/hr: 1,900
2. At $9/hr: 1,500
3. At $10/hr: 1,200
4. At $11/hr: 900
5. At $12/hr: 700
6. At $13/hr: 500
7. At $14/hr: 400

To calculate the total variable labor cost last month, we need to multiply each wage rate by its corresponding quantity labor supplied and then sum these values. For example, at $8/hr, the total labor cost would be $8/hr x 1,900 = $15,200. Performing the same calculation for each wage rate and summing the values gives us the total variable labor cost last month.