Question
Ames Company had the following costs for the past three years in which it produced 20,000, 24,000, and 30,000 units, respectively. Identify which of the
Ames Company had the following costs for the past three years in which it produced 20,000, 24,000, and 30,000 units, respectively. Identify which of the costs were variable, fixed, and mixed.
| Year1 | Year 2 | Year 3 | |||
| Direct Materials | $40,000 | $48,000 | $60,000 | ||
| Utilities Expense | 22,000 | 26,000 | 32,000 | ||
| Property Taxes | 6,000 | 6,000 | 6,000 | ||
| Travel Expense | 3,000 | 3,000 | 3,000 | ||
| Direct Labor | 30,000 | 36,000 | 45,000 | ||
| Maintenance Expense | 11,000 | 13,000 | 16,000 | ||
| Direct Labor | Answer 1Choose...VariableFixedMixed | ||||
| Utilities Expense | Answer 2Choose...VariableFixedMixed | ||||
| Direct Materials | Answer 3Choose...VariableFixedMixed | ||||
| Property Taxes | Answer 4Choose...VariableFixedMixed | ||||
| Travel Expense | Answer 5Choose...VariableFixedMixed | ||||
| Maintenance Expense | Answer 6Choose...VariableFixedMixed | ||||
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