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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. a. $1,913,000 b. $1,924,000 c. $1,865,000 d. $1,891,000.
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