Question

Brief Exercise 18-01 Monthly production costs in Dilts Company for two levels of production are as...

Brief Exercise 18-01

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.

Indirect labor select a type of costs

FixedMixedVariable

Supervisory salaries select a type of costs

FixedMixedVariable

Maintenance select a type of costs

FixedMixedVariable

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Solution: Answer Reason Indirect labor Variable As per unit cost is same irrespective of change in units Supervisory salaries

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