Habib Manufacturing has five manufacturing departments and the following operating and cost information for the two most recent months of activity: April May Units produced 4,000 6,000 Costs in each department Department 1 $ 16,000 $ 18,000 Department 2 16,000 26,000 Department 3 20,000 20,000 Department 4 32,000 48,000 Department 5 16,000 24,000 Required: Identify whether the cost in each department is fixed, variable, or mixed.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Habib Manufacturing has five manufacturing departments and the following operating and cost information for the two most recent months of activity:

 

  April May
Units produced 4,000 6,000
Costs in each department    
Department 1 $ 16,000 $ 18,000
Department 2 16,000 26,000
Department 3 20,000 20,000
Department 4 32,000 48,000
Department 5 16,000 24,000

 

Required:

Identify whether the cost in each department is fixed, variable, or mixed.

 

 

 
Departments
1
2
3
4
5
Fixed, Variable or
Mixed Costs
Transcribed Image Text:Departments 1 2 3 4 5 Fixed, Variable or Mixed Costs
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