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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
Transcribed Image Text: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
0
6,800
1,800
3,800
4,800
580
1,800
3,800
4,800
180
$ 21,600
13,600
1,800
4,800
4,800
780
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