K-Too Everwear Corporation can manufacture mountain climbing shoes for $13.5 per pair in variable raw material costs and $13.44 per pair in variable labor expense. The shoes sell for $102 per pair. Last year, production was 160,000 pairs. Fixed costs were $900,000.

What were total production costs?

Production costs= $4,310,400

Explanation:

Giving the following information:

$13.5 per pair in variable raw material costs and $13.44 per pair in variable labor expense.

The production costs are the sum of direct material, direct labor, and variable overhead.

Production costs= (13.5 + 13.44)*160,000= $4,310,400

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