Question

Closet Links Clothing Company provided the following manufacturing costs for the month of June. Direct labor cost $ 132 comma 000 Direct materials cost 83 comma 000 Equipment depreciation ​(straightminus​line) 20 comma 000 Factory insurance 18 comma 000 Factory​ manager's salary 10 comma 000 ​Janitor's salary 3 comma 000 Packaging costs 19 comma 800 Property taxes 16 comma 000 From the above​ information, calculate Closet​ Link's total variable costs.

Answer 1

Closet​ Link's total variable costs is $234,800

Step-by-step explanation:

Given:

Direct labor cost = $ 132,000

Direct materials cost = $83,000

Equipment depreciation ​(straight-​line) = $20,000

Factory insurance = $18,000

Factory​ manager's salary = $10,000 ​

Janitor's salary = $3,000

Packaging costs = $19,800

Property taxes = $16,000

Total variable costs = Direct materials cost + Direct labor cost + Packaging costs

= $83,000 + $132,000 + $19,800 = $234,800