Which of the following costs is a mixed cost?

1. Salary of a factory supervisor

2. Electricity costs of $2 per kilowatt-hour

3. Rental costs of $5,000 per month plus $.30 per machine hour of use

4. Straight-line depreciation on factory equipment

Question

Nash Wall

Business

28 July, 20:09

Which of the following costs is a mixed cost?

1. Salary of a factory supervisor

2. Electricity costs of $2 per kilowatt-hour

3. Rental costs of $5,000 per month plus $.30 per machine hour of use

4. Straight-line depreciation on factory equipment

+4

Answers (1)

Know the Answer?

Jefferson Campos · Answer 1

3. Rental costs of $5,000 per month plus $.30 per machine hour of use

Explanation:

Mixed cost is the one which has both the factors, variable and fixed.

Sometimes, the segregation is also difficult, when the total cost is given.

In the chosen option also, there is a fixed cost involved that is monthly expense of $5,000.

Further for each hour of machine used the cost increases and is $0.30 per hour.

That is variable as the total will depend upon the number of hours the machine is used.

All the other three are either completely fixed like salary, and depreciation, or either completely variable like electricity cost.

Which of the following costs is a mixed cost?1. Salary of a factory supervisor2. Electricity costs of $2 per kilowatt-hour3. Rental costs of $5,000 per month plus $.30 per machine hour of use4. Straight-line depreciation on factory equipment

Which of the following costs is a mixed cost?

1. Salary of a factory supervisor

2. Electricity costs of $2 per kilowatt-hour

3. Rental costs of $5,000 per month plus $.30 per machine hour of use

4. Straight-line depreciation on factory equipment