Question

Question: Determining total variable cost

For each variable cost per unit listed below, determine the total variable cost when units produced and sold are 25, 50, and 100 units.

Direct materials $ 40

Direct labor 80

Variable overhead 9

Sales commission 12

Short answer

Answer

The total variable cost for 25 units is $3,525 per unit, for 50 units is $7,050 , for 100 units is $14,100 .

Step-by-step solution

Calculation of total variable cost per unit

Particulars	Amount
Direct materials	$40
Direct labor	$80
Variable overhead	$9
Sales commission	$12
Total variable cost per unit	$141

 Step 2: Calculation of fixed cost per unit

	25	50	100
Variable cost per unit	$141	$141	$141
× No. of units	25	50	100
Fixed cost per unit	$3,525	$7,050	$14,100