Eucalyptus company has the following budgeted variable costs per unit produced: direct materials $0.35 direct labor $0.28 variable overhead: supplies $0.04 indirect labor $0.09 power $0.03 budgeted fixed overheads per quarter include rent of $25,000 and depreciation of $150,000. calculate the cost of production at the activity level of 2,200,000 units.

The cost of production at the activity level of 2,200,000 units is $1,913,000

Explanation:

Total budgeted variable costs per unit

= Direct materials + Direct labor + Variable overhead

= $0.35 + $0.28 + ($0.04 + $0.09 + $0.03)  

= $0.35 + $0.28 + $0.16

= $0.79

Cost of Production

= Total Variable costs + Total Fixed costs

= (Units produced*Variable costs per unit) + (Rent + Depreciation)

= (2,200,000*$.79) + ($25,000 + $150,000)

= $1,738,000 + $175,000

= $1,913,000

Therefore, The cost of production at the activity level of 2,200,000 units is $1,913,000

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answer; i believe the correct answer is (4.0);