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E3.1 (LO 1), AP Wren is trying to better understand her company's overhead costs to respond to an e-mail from her supervisor. She quickly gathered
E3.1 (LO 1), AP Wren is trying to better understand her company's overhead costs to respond to an e-mail from her supervisor. She quickly gathered information from the last 3 months regarding production counts and key overhead costs, as follows. # of Units Produced 500 380 410 Utility Cost $600 505 533 Indirect Material Cost $900 684 738 Depreciation Cost $5,200 5,200 5,200 Required a. Based on just the information provided above, help Wren classify each of the three costs by behavior: variable, fixed, or mixed. Explain how you came to your determinations. b. If these 3 months are representative of the company's typical production, what is its relevant range? c. Would you expect the depreciation cost to remain at $5,200 if the company produces 1,000 units? Explain why or why not.
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