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Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in August for 120 chairs were:
Materials cost $4,800
Labor cost 2,870
Rent 1,500
Depreciation 2,500
Other fixed costs 3,200
Question 1: Materials and labor are the only variable costs. If production and sales are budgeted to change to 130 chairs in August, how much is the expected total variable cost on the August budget?
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