Production costs for two levels of production

Reference no: EM131812427

Problem 1 Golemon Gadgets incurred the following production costs for two levels of production. 2,500 units 7,500 units Total Cost Cost per unit Total Cost Cost per unit Direct materials $ 7,750 $ 3.10 $ 23,250 $ 3.10 Direct labor 14,000 5.60 42,000 5.60 Utilities 1,275 0.51 3,025 0.40 Rent 6,000 2.40 6,000 0.80 Maintenance 4,350 1.74 11,850 1.58 Supervisory salaries 3,000 1.20 3,000 0.40 Which of the above costs are (a) variable, (b) fixed, and (c) mixed?

Reference no: EM131812427

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