Determining fixed costs for supervision. At the Shelby Company, factory supervision is a fixed cost of $10,000 per month.

a. Compute the supervision cost per direct labor hour at each of the following monthly activity levels:

(1) 10,000 hours

(2) 11,000 hours

(3) 12,500 hours (4) 14,285 hours

b. What is the effect of increases in direct labor hours on the fixed cost per unit?

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6.. Determining fixed, variable, and semivariable costs. Indicate whether each of the following costs is likely to be fixed, variable, or semivariable, based on physical units of output: a. Direct materials b. Direct labor c. Depreciation d. Salaries of factory supervisors e. Insurance on factory building f. Heat, light, and power g. Indirect materials h. Indirect labor i. Payroll taxes j. Warehouse rental DATA FOR EXERCISES 7-10 The Reed Company's records show the following data for the four quarters of 19X2: