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

Cost 2,000 Units 4,000 Units

Indirect labor $10,000 $20,000

Supervisory salaries 5,000 5,000

Maintenance 4,000 6,000

Indicate which costs are variable, fixed, and mixed.

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)