Helena Company reports the following total costs at two levels of production. Classify each cost as variable, fixed, or mixed. 5,000 Units 10,000 Units Solution Solution Variable costs: Direct materials, direct labor, and indirect materials are variable costs. Fixed costs: Depreciation and rent are fi xed costs. Mixed costs: Maintenance and utilities are mixed costs. .

1. Helena Company reports the following total costs at two levels of production.
Classify each cost as variable, fixed, or mixed.
5,000 Units
10,000 Units
5,000 Units 10,000 Units
Indirect labor $ 3,000 $ 6,000
Property taxes 7,000 7,000
Direct labor 28,000 56,000
Direct materials 22,000 44,000
Depreciation 4,000 4,000
Utilities 5,000 7,000
Maintenance 9,000 11,000
Solution

2. Solution
Variable costs: Direct materials, direct labor, and indirect materials are variable costs.
Fixed costs: Depreciation and rent are fi xed costs.
Mixed costs: Maintenance and utilities are mixed costs.