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Exercise 5-1 b (Video) Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels
Exercise 5-1 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 Direct labor Utilities Rent $8,000 $1.60 $16,000 $1.60 9,500 1.90 19,000 1.90 2,000 0.40 3,300 0.33 4,000 0.80 4,000 0.40 Maintenance 800 0.16 1,400 0.14 Supervisory salaries 1,000 0.20 1,000 0.10 (b) Classify each cost above as either variable, fixed, or mixed. Production Costs Direct materials Direct labor Utilities Rent Maintenance Supervisory salaries Click if you would like to Show Work for this question: Open Show Work
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