Homework Answers
a) Classification
| Direct material | Variable |
| Direct labor | Variable |
| Utilities | Mixed |
| Property taxes | Fixed |
| Indirect labor | Variable |
| Supervisory salaries | Fixed |
| Maintenance | Mixed |
| Depreciation | Fixed |
b1) Variable cost per unit = ( 8235+23084+4941)/3700 = 9.80
Variable cost per unit for utilities = (3104-329)/3700 = 0.75
Variable cost per unit for maintenance = (1885-220)/3700 = 0.45
c) Cost to produce
| Variable cost (11*5490) | 60390 |
| Utilities | 329 |
| Maintenance | 220 |
| Property tax | 1098 |
| Supervisor salaries | 2086 |
| Depreciation | 2635 |
| Total cost | 66758 |
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