Answer:
Indirect labor= variable cost
Supervisory salary= fixed cost
Maintenance= mixed cost (it should have a minimum amount and then increase with an increase in production)
Explanation:
Giving the following information:
Cost 2,000 Units 4,000 Units:
Indirect labor $10,000 $20,000
Supervisory salaries 5,000 5,000
Maintenance 4,000 6,000
Variable costs changes according to production.
Fixed costs don't vary with production.
Mixed costs have a fixed component and a variable component.
Indirect labor= variable cost
Supervisory salary= fixed cost
Maintenance= mixed cost (it should have a minimum amount and then increase with an increase in production)
