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Question - Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were:
Material cost - $4,820
Labor cost - 2,550
Rent - 1,500
Depreciation - 2,500
Other fixed costs - 3,200
Materials and labor are the only variable costs. If production and sales are budgeted to change to 140 chairs in August, how much is the expected total variable cost on the August budget?
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