Average Variable Cost Per Unit Formula. The formula is as per below. The average variable cost avc is the total variable cost per unit of output.
Multiply the variable costs for one unit of product by the total number of units produced. The formula is as per below. When determining the variable costs of production the following are the most common costs to consider.
Thus for september 2019 the variable cost per unit of the company comes to 162.
Average variable cost is determined by dividing the total variable cost by the output. Variable costing direct labour cost direct raw material cost variable manufacturing overhead number of units produced conversely this can also be represented as a summation of direct labor cost per unit direct raw material cost per unit and variable manufacturing overhead per unit. Multiply the variable costs for one unit of product by the total number of units produced. Direct material expenses change with change in the level of production and thus will be considered as a variable cost.