Identifying cost behavior
At the various activity levels shown, Johnston Company incurred the following costs.
|
Units Sold |
20 |
40 |
60 |
80 |
100 |
|
|
a. |
Depreciation cost per unit |
240.00 |
120.00 |
80.00 |
60.00 |
48.00 |
|
b. |
Total rent cost |
3,200.00 |
3,200.00 |
3,200.00 |
3,200.00 |
3,200.00 |
|
c. |
Total cost of shopping bags |
2.00 |
4.00 |
6.00 |
8.00 |
10.00 |
|
d. |
Cost per unit of merchandise sold |
90.00 |
90.00 |
90.00 |
90.00 |
90.00 |
|
e. |
Rental cost per unit of merchandise sold |
36.00 |
18.00 |
12.00 |
9.00 |
7.20 |
|
f. |
Total phone expense |
80.00 |
100.00 |
120.00 |
140.00 |
160.00 |
|
g. |
Cost per unit of supplies |
1.00 |
1.00 |
1.00 |
1.00 |
1.00 |
|
h. |
Total insurance cost |
480.00 |
480.00 |
480.00 |
480.00 |
480.00 |
|
i. |
Total salary cost |
$1,200.00 |
$1,600.00 |
$2,000.00 |
$2,400.00 |
$2,800.00 |
|
j. |
Total cost of goods sold |
1,800.00 |
3,600.00 |
5,400.00 |
7,200.00 |
9,000.00 |
Required
Identify each of these costs as fixed, variable, or mixed.