BE5-1

Classify costs as variable, fixed, or mixed.

(LO 1), C

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, and give the reason for each answer.

BE5-3

For Wesland Company, a mixed cost is $15,000 plus $18 per direct labor hour. Dia-gram the behavior of the cost using increments of 500 hours up to 2,500 hours on the horizontal axis and increments of $15,000 up to $60,000 on the vertical axis.