Identification of Variable, Fixed, and Mixed Costs
Identify the following as (a) fixed costs, (b) variable costs, or (c) mixed costs:
|
1. Direct materials |
4. Personnel manager’s salary |
|
2. Electricity |
5. Factory building rent |
|
3. Operating supplies |
|
Mixed Costs: High-Low Method
Using the high-low method and the following information, compute the monthly variable cost per telephone hour and total fixed costs for Sadiko Corporation
|
Month |
Telephone Hours Used |
Telephone Costs |
|
April |
96 |
$4,350 |
|
May |
93 |
$4,230 |
|
June |
105 |
4,710 |