Helena Company reports the following total costs at two levels of production.
Helena Company reports the following total costs at two levels of production.
10,000 Units
20,000 Units
Direct materials
$20,000
$40,000
Maintenance
8,000
10,000
Direct labor
17,000
34,000
Indirect materials
1,000
2,000
Depreciation
4,000
4,000
Utilities
3,000
5,000
Rent
6,000
6,000
Classify each cost as variable, fixed, or mixed.
Recall that a variable cost varies in total directly and proportionately with each change in activity level.
Recall that a fixed cost remains the same in total with each change in activity level.
Recall that a mixed cost changes in total but not proportionately with each change in activity level.