Exercise 18-1 b (Video) Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Costs Incurred Production in Units 5,000 10,000 Production Costs Total Cost Cost/Unit Total Cost Cost/Unit Direct materials $8,000 $1.60 $16,000 $1.60 Direct labor 9,500 19,000 1.90 Utilities 2,000 0.40 3,300 0.33 Rent 4,000 0.80 4,000 0.40 Maintenance 1,400 0.14 Supervisory salaries 1,000 0.20 1,000 0.10 1.90 800 0.16 (b) Classify each cost above as either variable, fixed, or mixed. Production Costs Direct materials Direct labor Utilities Rent Maintenance Supervisory salaries