How much are total variable costs

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Question - Serta Carpet, which manufactures carpet, incurred the following costs for March when 2,600 yards of carpet were produced and sold:

  • $12,200 for nylon thread used on carpet
  • $16,000 for scotch guard for carpet
  • $4,000 for jute backing to reinforce the carpet
  • $5,000 for glue to be used in the manufacturing process
  • $21,000 for insurance (half for administrative activities, half for production activities)
  • $7,000 for production employee's wages
  • $10,000 for rent (60% for the production facility, 40% for the administrative offices)

How much are total variable costs if 2,200 yards of carpet are produced and sold in April?

$44,200

$37,400

$63,631

$55,169

Reference no: EM131820550

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