Hadicke Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $300 and $200, respectively.

Instructions

(a) Identify the above costs as variable, fixed, or mixed.

(b) Calculate the expected costs when production is 5,000 units.

Transcribed Image Text:

Production in Units 3,000 Production Costs Direct materials Direct labor Utilities $7,500 15,000 1,800 Property taxes 1,000 Indirect labor 4,500 Supervisory salaries 1,800 Maintenance 1,100 Depreciation 2,400