During October the plant produced 8,000 ingots and incurred the following costs: a. Purchased 33,000 pounds of materials at a cost of $2.95 per pound. There were no raw materials in inventory at the beginning of the month. b. Used 27,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 3,800 direct labor-hours at a cost of $6.20 per hour. d. Incurred a total variable manufacturing overhead cost of $4,560 for the month. A total of 1,900 machine-hours was recorded.

Total Variable Costs = $110130

Explanation:

The question in incomplete. Requirements were not provided in the question, as a result it is not clear what the question requires us to do. We will assume the question requires us to calculate Total variable costs since There is nothing in the question that talks about fixed costs.

Total Variable Costs

Manufacturing costs

Direct Material Per pound = $2.95

Direct Material used  = 27800 pounds

Direct Material Cost = 27800 x 2.95 = $82010

Direct Labor

Direct Labor cost per hour = $6.20

Direct Labor hours = 3800

Direct Labour Cost = 3800 x $6.20 = $23560

Variable Manufacturing overhead cost = $4560

Total Variable Costs = Direct Material cost + Direct labor costs + Variable Manufacturing overhead

Total Variable Costs = $82010 + $23560 + $4560

Total Variable Costs = $110130

107x106 is the answer