Question

At the various activity levels shown, Harper Company incurred the following costs: 20111 100 40 60 36.00$18.0012.00 $ 9.00 $ 7.20 120.00140.00 160.00 1.00 480.00 480.00 480.00480.00 480.00 a. Rental cost per unit of merchandise sold b. Total phone expense c. Cost per unit of supplies d. Total insurance cost e. Total salary cost f. Total cost of goods sold g. Depreciation cost per unit h. Total rent cost i. Total cost of shopping bags j. Cost per unit of merchandise sold 80.00 1.00 100.00 1.00 1.00 1.00 1,200.00 1,600.00 2,000.002,400.00 2,800.00 9,000.00 1,800.00 3,600.00 5,400.00 7,200.00 9,000.0 240.00 120.00 80.00 60.00 48.00 3,200.00 3,200.00 3,200.00 3,200.00 3,200.00 10.00 2.00 90.00 4.00 90.00 6.00 90.00 8.00 90.00 90.00 Required Identify each of these costs as fixed, variable, or mixed

Answer 1

	Cost category		reason
a	Fixed		720 fixed
b	Mixed		mixed
c	Variable		Per unit sale
d	Fixed		480 fixed
e	Mixed		mixed
f	Variable		Per unit sale
g	Fixed		Fixed
h	Fixed		Fixed
i	Variable		Per unit sale
j	Variable		Per unit sale