Following are costs for eight different items. Costs are shown for three different levels of units produced and sold. Classify each of the eight cost items as either variable, fixed, or mixed. Costs for Different Levels of Units Produced and Sold Direct labor Depreciation on factory equipment. Direct materials. Rent on factory building Salesperson compensation Factory supervisor salary Factory utilities Insurance on factory building Direct labor Depreciation on factory equipment Direct materials Rent on factory building Salesperson compensation Factory supervisor salary Factory utilities Insurance on factory building At 0 units $0 6,800 0 4,800 6,800 7,800 480 1,750 At 2,000 units $ 13,800 6,800 9,800 4,800 6,800 7,800 880 1,750 At 4,000 units $ 27,600 6,800 19,600 4,800 7,800 7,800 1,080 1,750

Following are costs for eight different items. Costs are shown for three different levels of units produced and sold. Classify each of the eight cost items as either variable, fixed, or mixed. Costs for Different Levels of Units Produced and Sold Direct labor Depreciation on factory equipment. Direct materials. Rent on factory building Salesperson compensation Factory supervisor salary Factory utilities Insurance on factory building Direct labor Depreciation on factory equipment Direct materials Rent on factory building Salesperson compensation Factory supervisor salary Factory utilities Insurance on factory building At 0 units $0 6,800 0 4,800 6,800 7,800 480 1,750 At 2,000 units $ 13,800 6,800 9,800 4,800 6,800 7,800 880 1,750 At 4,000 units $ 27,600 6,800 19,600 4,800 7,800 7,800 1,080 1,750

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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