\"Varagon” corp. has the following data available: Using the above data, and tak

Question

"Varagon” corp. has the following data available:

Using the above data, and taking in consideration that all produced goods are also sold and no inventories are kept, please calculate the following:

a) Variable manufacturing cost of goods sold.

Sales Direct materials used Direct labour Variable indirect manufacturing cost Fixed indirect manufacturing cost Variable selling- and administrative expenses 90.000,00 Fixed selling-and adminstrative expenses 80.000,00 920.000,00 350.000,00 210.000,00 100.000,00 50.000,00

Explanation / Answer

Variable cost of ggods sold = Direct Mat + Direct Labour + Variable Manf OH

= 350000 + 210000 + 100000

= 660000

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