Variable cost per unit = raw materials cost / total output + direct labor cost / total output = $12,000 / 142,300 + $65,200 / 142,300 = $0.08 + $0.46 = $0.54 The total variable cost is 142,300 x $0.54 = $77,200
The value of the marginal product of labor is the wage times the quantity of labor hired. Is the statement true or false? The sum of the variable cost and the fixed cost is called economic cost. a. True b. False The average variable cost curve is U-shaped if we h...
If a project demands larger investment from the company, the costs associated with the project as it grows—cost of labor, material, etc.—are considered variable costs. To calculate variable cost: add together all fluctuating expenses outlined above within a specified period of time. The ...
A variable cost is an expense that changes from one instance to the next, like a household's power bill. To calculate variable...
the need for manual labor is eliminated as the system controlled by drives can be automated, thus saving in man-hours and labor costs Savings on the electricity bill variable speed drives use only the needed amount of energy by running the motors at partial load, which can result up to 50...
IS INDIRECT LABOR A FIXED COST? Fixed costs arebusiness expensesthat remain constant, regardless of thebusiness activity. Indirect labor costs can either be fixed or variable. For example, the salary of the manager is fixed and has to be paid irrespective of the business activity. ...
So, total variable cost does not necessarily signifies an increase, but a decrease as well. Mostly, these costs include the labor cost, cost of raw materials, packaging cost, transportation costs, utility bills, or any expense that increase when the volume of produce increases. Total variable ...
Fixed Costs: Costs that remain consistently the same throughout the project, such as cost to rent equipment. Variable Costs: Changing costs during the course of the project. An example the hours of anticipated labor for a project might be greater than the actual time it took for labor to be...
Seeking more education may feel like a promising option for gaining skills and increasing job opportunities, but prospective students must first determine whether graduate school is worth the cost. In recent years, increased federal and legislative attention has been paid to thecost of an undergraduate...
Definition:The average variable cost represents the totalvariable cost per unit, including materials and labor, in short-term production calculated by dividing total variables costs by total output. Hence, a change in the output (Q) causes a change in thevariable cost. ...