Classify costs as variable, fixed, or semivariable. (Obj. 3). The Offshore Company's accountant has accumulated cost figures at various activity levels. The following data show the activity levels and the direct management costs for six months:

Direct Labor Direct Management Hours 13,360 15,960 11,200 10,000 14.620 15,220 Costs $82,000 94,000 60,000 60,000 82,000 94,000

a. What term can best be used to describe this cost behavior?

b. Explain this cost behavior. DATA FOR EXERCISES 9 AND 10 The Gaines Company's records show the following data for the four quarters of 1989. Direct Indirect Indirect Quarter Labor Hours Labor Materials First 10,200 $26,080 $1,520 Second 14,600 27,894 1,960 Third 12,800 27,120 1,780 Fourth 13,000 27,200 1,800 LO.1