Activity 1: Monthly production costs in Dilts Company for two levels of production Indicate which costs are val anow,..... , and mixed, and give the reason for each answer. E13-4 Family Furniture Corporation incurred the following costs. Instructions: Identify the costs above as variable, fixed, or mixed. 1. Wood used in the production of furniture. 2. Fuel used in delivery trucks. 3. Straight-line depreciation on factory building. 4. Screws used in the production of furniture. 5. Sales staff salaries. 6. Sales commissions. 7. Property taxes. 8. Insurance on buildings. 9. Hourly wages of furniture craftsmen. 10. Salaries of factory supervisors. 11. Utilities expense. 12. Telephone bill. Do It 13.1. Amanda Company reports the following total costs at two levels of production Instructions: - Classify each cost as variable, fixed, or mixed. Bike Attire Inc. is a manufacturer of bicycle tires. The cost of electricity is considered a mixed cost by thecompany. The variable portion of the electricity cost is assumed to be dependant on the number of units produced. The following is the related cost and activity data for the past six months: required a) Using the high-low method, factor out the fixed and variable portions of the electricity cost. able cost per activity (Production) = Change in total cost Change in activity The Crazy Hair Salon provides special-occasion haircuts and generates average revenue of $50 per customer. The salon's fixed costs are $40,000 per year, which include rent, utilities and magazine subscriptions. Its variable costs are $20 per customer. Target operating income for the year is required a) Calculate the revenues needed to obtain the target operating income. b) How many haircuts have to be provided to earn an operating income of $80,000 ? To breakeven? c) Calculate the operating income if 6,000 haircuts are provided