Monthly production costs in Dilts Company for two levels of production are as follows.

Cost 2,000 Units 4,000 Units

Indirect labor $10,000 $20,000

Supervisory salaries 5,000 5,000

Maintenance 4,000 6,000

Indicate which costs are variable, fixed, and mixed.

Question

Business

Finn Buckley

10 October, 05:48

Monthly production costs in Dilts Company for two levels of production are as follows.

Cost 2,000 Units 4,000 Units

Indirect labor $10,000 $20,000

Supervisory salaries 5,000 5,000

Maintenance 4,000 6,000

Indicate which costs are variable, fixed, and mixed.

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Answers (1)

Know the Answer?

Camron Acevedo · Answer 1

Indirect labor = variable cost

Supervisory salary = fixed cost

Maintenance = mixed cost (it should have a minimum amount and then increase with an increase in production)

Explanation:

Giving the following information:

Cost 2,000 Units 4,000 Units:

Indirect labor $10,000 $20,000

Supervisory salaries 5,000 5,000

Maintenance 4,000 6,000

Variable costs changes according to production.

Fixed costs don't vary with production.

Mixed costs have a fixed component and a variable component.

Indirect labor = variable cost

Supervisory salary = fixed cost

Maintenance = mixed cost (it should have a minimum amount and then increase with an increase in production)

Monthly production costs in Dilts Company for two levels of production are as follows.Cost 2,000 Units 4,000 UnitsIndirect labor $10,000 $20,000Supervisory salaries 5,000 5,000Maintenance 4,000 6,000Indicate which costs are variable, fixed, and mixed.

Monthly production costs in Dilts Company for two levels of production are as follows.

Cost 2,000 Units 4,000 Units

Indirect labor $10,000 $20,000

Supervisory salaries 5,000 5,000

Maintenance 4,000 6,000

Indicate which costs are variable, fixed, and mixed.