questionThe following costs are some of the costs incurred by Norwood Incorporated to produce and sell 1,000 units of one of their primary products:
ā¢ Direct materials, $32,000.
ā¢ Direct labor, $72,000.
ā¢ Factory building rent, $10,000.
ā¢ Factory maintenance salaries, $7,800.
ā¢ Sales commissions, $9,200.
ā¢ Shipping costs, $3,000.
ā¢ Factory equipment lubrication supplies, $1,200.
ā¢ Factory supervisor's salary, $21,500.
ā¢ Straight-line depreciation expense on factory equipment, $6,000.
ā¢ Advertising campaign costs, $3,000.
How much are the total variable costs?
$120,400
$128,200
$108,200
$117,400