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Select cost information for Seacrest Enterprises is as follows: 1,000 units of output 5,000 units of output Total Cost/Unit Total Cost/UnitDirect materials $5,000 $5.00 $25,000 $5.00Utilities expense $1,000 $1.0 0 $3,750 $0.75Rent expense $4,000 $4.00 $4,000 $0.80Based on this information:a. Both direct materials and rent expense are variable costs.b. Utilities expense is a mixed cost and rent expense is a variable cost.c. Utilities expense is a mixed cost and rent expense is a fixed cost.d. Direct materials is a fixed cost and utilities expense is a mixed cost.e. Both direct materials and utilities expense are mixed costs.
Select cost information for Seacrest Enterprises is as follows: 1,000 units of output 5,000 units of output Total Cost/Unit Total Cost/UnitDirect materials $5,000 $5.00 $25,000 $5.00Utilities expense $1,000 $1.0 0 $3,750 $0.75Rent expense $4,000 $4.00 $4,000 $0.80Based on this information:a. Both direct materials and rent expense are variable costs.b. Utilities expense is a mixed cost and rent expense is a variable cost.c. Utilities expense is a mixed cost and rent expense is a fixed cost.d. Direct materials is a fixed cost and utilities expense is a mixed cost.e. Both direct materials and utilities expense are mixed costs.
Answer:c. Utilities expense is a mixed cost and rent expense is a fixed cost.Explanation:Seacrest Enterprises1000 units 5000 UnitsTotal Cost Total Cost /Unit Total Cost Total Cost/UnitDirect materials $5,000 $5.00 $25,000 $5.00Utilities expense $1,000 $1.0 0 $3,750 $0.75Rent expense $4,000 $4.00 $4,000 $0.80Direct Materials show variable CostsUtilities expense show mixed costsRent Expense show fixed costsThe correct answer isc. Utilities expense is a mixed cost and rent expense is a fixed cost....
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