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:

a.

Both direct materials and rent expense are variable costs.

b.

Utilities expense is a mixed cost and rent expense is a variable cost.

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.

e.

Both direct materials and utilities expense are mixed costs.