todd shenkenberg md pa Hematology & Oncology An internist doctor of osteopathy that specializes in the treatment of the combination of hematology and oncology disorders.
Formula of Variable Cost. The formula to calculate variable cost is: Total Variable Cost = Total Quantity of Output * Variable Cost Per Unit of Output. To recognize variable costs, it is important to understand how to categorize costs.Variable costs are those which do not remain constant, specifically when production activities fluctuate.ormula of Variable Cost. The formula to calculate variable cost is: Total Variable Cost = Total Quantity of Output * Variable Cost Per Unit of Output. To recognize variable costs, it is important to understand how to categorize costs.
Examples of variable costs are sales commissions, direct labor costs, cost of raw materials used in production, and utility costs. The formula for variable cost is given as: Total variable cost = Quantity of output x Variable cost per unit of output. Variable Cost Example For example, letâs assume that it costs a bakery $15.00 to bake a cake - $5.00 for raw materials such as sugar, milk, and flour, and $10.00 for the direct labor involved in baking 1 cake.