• ABC Manufacturing produces electronic components. Calculate the direct costs, fixed costs, variable costs, and total operating costs for producing 1,000 units based on the following data:
  • Direct materials: $20,000
  • Direct labor: $15,000
  • Factory rent (fixed): $10,000 per month
  • Utilities (variable): $1,000 per month plus $2 per unit
  • Depreciation (fixed): $15,000 annually
  • Other operating expenses (variable): $500 plus $5 per unit.