The following information pertains to TwinStone Industries for 2014:

Estimated total overhead costs for 2014 $37,500

Estimated direct labor costs for 2014 25,000

Actual direct labor costs 22,500

Actual overhead costs 36,000

Activity base Direct labor costs

What is the predetermined overhead rate for Stone Industries for 2014? (be sure to show all work to receive full credit)

2-

Mika Enterprises has the following information available regarding costs at various levels of monthly production:

Production volume 7,000 10,000

Direct materials $ 70,000 $100,000

Direct labor 56,000 80,000

Indirect materials 21,000 30,000

Supervisors' salaries 12,000 12,000

Depreciation on plant and equipment 10,000 10,000

Maintenance 32,000 44,000

Utilities 15,000 21,000

Insurance on plant and equipment 1,600 1,600

Property taxes on plant and equipment 2,000 2,000

Total $219,600 $300,600

Required:

a. Identify each cost as being variable, fixed, or mixed Be sure to label each answer clearly.