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Rochester Motor Company manufactures and sells a single product.The following information pertains to the company's projected operating costs for the months of June and July:

Rochester Motor Company manufactures and sells a single product.The following information pertains to the company's projected operating costs for the months of June and July:

JuneJuly

Production Volume30003600

Direct Materials$45,000 $54,000

Direct Labor36,00043,200

Machine maintenance 5,0005,500

Factory insurance 2,0002,000

Depreciation on machinery3,5003,500

Electricity used in factory1,5002,000

Based on this evidence, which of the following is fixed cost?

A. Direct material

B. Direct labor

C. Electricity used in factory

D. Factory Insurance

E. Machine maintenance

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