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E18-1 Define and classify variable, fixed, and mixed costs (LO 1,3), C Turgro Company manufactures a single product. Annual production costs incurred in the manufacturing
E18-1 Define and classify variable, fixed, and mixed costs (LO 1,3), C Turgro Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production Costs Incurred uction in Unit 5,000 10,000 Direct materials Direct labor Utilities Rent Maintenance Supervisory salaries Production Costs Total Cost Cost/Unit Total Cost Cost/Unit S1.60 1.90 0.35 0.40 0.11 0.10 $8,000 9,500 2,000 4,000 800 1,000 S1.60 S16,000 1.90 19,000 3,500 4,000 1,100 1,000 0.40 0.80 0.16 0.20 Instructions (a) Define the terms variable costs, fixed costs, and mixed costs (b) Classify each cost above as either variable, fixed, or mixed
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