Costs at three different activity levels are shown below for six different costs. Classify each cost as either fixed, variable, or mixed. Costs Direct materials Direct labor Factory building rent. Salesperson compensation Factory supervisor salary Factory utilities Direct materials Direct labor Factory building rent Salesperson compensation Factory supervisor salary Factory utilities Units Produced and Sold At 0 units At 2,000 units At 4,000 units $ 10,800 $0 $ 21,600 0 6,800 13,600 1,800 1,800 3,800 4,800 180 3,800 4,800 580 1,800 4,800 4,800 780
Costs at three different activity levels are shown below for six different costs. Classify each cost as either fixed, variable, or mixed. Costs Direct materials Direct labor Factory building rent. Salesperson compensation Factory supervisor salary Factory utilities Direct materials Direct labor Factory building rent Salesperson compensation Factory supervisor salary Factory utilities Units Produced and Sold At 0 units At 2,000 units At 4,000 units $ 10,800 $0 $ 21,600 0 6,800 13,600 1,800 1,800 3,800 4,800 180 3,800 4,800 580 1,800 4,800 4,800 780
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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