Mike's Radiator Services specializes in the repair and replacement of radiators for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (January) are listed below: Item Number of radiators replaced Variable expenses: Direct materials (new radiators) 100 $50,000. Direct labour (2 hours per installation) Indirect materials 5,000 500 Fixed expenses: Installation supervisor's wages $8,000 Equipment depreciation 1,000 Insurance and utilities for garage. 700