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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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  1. 10 October, 08:39
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    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)
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Home » Business » 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
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