A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows:
Amount per
Unit
Direct materials $ 7.00
Direct labor $ 4.00
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 5.00
Fixed selling expense $ 3.50
Fixed administrative expense $ 2.00
Sales commissions $ 1.00
Variable administrative expense $ 0.50
What is the total amount of variable cost incurred if the company produces and sells 11,700 units?
Multiple Choice
$17,550
$146,250
$163,800
$152,100
