Module 12 Chapter 13 Handout Cost-Volume-Profit E13-1 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 10,000 5,000 Production Costs Direct materials Total Cost $8,000 Costi Unit $1.60 Total Cost 516,000 Cost Unit $160 Direct labor 1.90 9.500 1.90 19.000 Utilities 0.33 2.000 0.40 3.300 Rent 0.40 4.000 0.80 4.000 Maintenance 014 800 0.16 1.400 010 0.20 1,000 Supervisory salaries 1.000 Instructions (a)Define the terms variable costs, fixed costs, and mixed costs (b) Classity each cost above as either variable, fixed, or mixed E13.3 The controller of Norton Industries has collected the following monthly expense data for use in analyz the cost behavior of maintenance costs Month Total Maintenance Costs Total Machine Hours January $2,700 300 February 3.000 350 March 3.600 500 April 4,500 3200 May 400 5500 June Instructions Determine the fixed and variable-cost components using the high-low method 1 690 700 Page 3 of 4