Rom Generators Is in the Process of Preparing a Production

question 66

Multiple Choice

Rom Generators is in the process of preparing a production cost budget for August.Actual costs in July for the production of 60 generators were: $\begin{array}{lr}\text { Materials cost } & 5,200 \\\text { Labor cost } & 2,600 \\\text { Rent } & 1,200 \\\text { Depreciation } & 1,700 \\\text { Other fixed costs } & 4,600\\\text { Total }&\$15,300\end{array}$ Materials and labor are the only variable costs.If production and sales are budgeted to increase to 70 generators in August, how much is the expected total variable cost on the August budget?

• A)$17,850
• B)$16,600
• C)$9,100
• D)$15,300