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3 years ago

Monthly production costs in Dilts Company for two levels of production are as follows.

Business

1 answer:

ivann1987 [24]3 years ago

8 0

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)

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