Q7: Select cost information for Seacrest Enterprises is as follows:

1,000 units of output

5,000 units of output

Total

Cost/Unit

Total

Cost/Unit

Direct materials

$

5,000

$

5.00

$

25,000

$

5.00

Utilities expense

$

1,000

$

1.00

$

3,750

$

0.75

Rent expense

$

4,000

$

4.00

$

4,000

$

0.80

Based on this information:

Select one: a. Utilities expense is a mixed cost and rent expense is a variable cost. b. Both direct materials and rent expense are variable costs. c. Utilities expense is a mixed cost and rent expense is a fixed cost. d. Direct materials is a fixed cost and utilities expense is a mixed cost.