Question Your Company is attempting to classify costs according to their cost behavior. Some are variable, some are mixed and some are fixed. Use the data concerning activity and costs listed below to identify all the variable costs. Look at how the dollars change between January and February, not what the costs are called. January February Units 1,200 1,400 Costs (total) Maintenance $600 $700 Supplies $750 $790 Insurance $800 $800 Utilities $888 $1,036 Lubrication $560 $576 Advertising $900 $1,050 A- maintenance and supplies. B- maintenance, supplies, utilities, lubrication, and advertising. C- maintenance, utilities, and advertising. D- supplies and advertising.

KC1ZQN The Asker · Accounting

Your Company is attempting to classify costs according to their cost behavior. Some are variable, some are mixed and some are fixed. Use the data concerning activity and costs listed below to identify all the variable costs.

Look at how the dollars change between January and February, not what the costs are called.

January February
Units 1,200 1,400
Costs (total)
Maintenance $600 $700
Supplies $750 $790
Insurance $800 $800
Utilities $888 $1,036
Lubrication $560 $576
Advertising $900 $1,050

A- maintenance and supplies.

B- maintenance, supplies, utilities, lubrication, and advertising.

C- maintenance, utilities, and advertising.

D- supplies and advertising.

More
Community Answer
VGO7M5

General GuidanceThe answer provided below has been developed in a clear step by step manner.Step: 1.lcWjel{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;font-size:0.75rem;box-sizing:border-box;}/*!sc*/ data-styled.g366[id="sc-mwpquf-0"]{content:"lcWjel,"}/*!sc*/ .loOCZZ{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;}/*!sc*/ .loOCZZ .align-left{text-align:left;}/*!sc*/ .loOCZZ .align-center{text-align:center;}/*!sc*/ .loOCZZ .align-right{text-align:right;}/*!sc*/ data-styled.g367[id="sc-mwpquf-1"]{content:"loOCZZ,"}/*!sc*/ .cpESDm .DraftEditor-editorContainer,.cpESDm .DraftEditor-root,.cpESDm .public-DraftEditor-content{height:inherit;text-align:initial;}/*!sc*/ .cpESDm .public-DraftEditor-content[contenteditable='true']{-webkit-user-modify:read-write-plaintext-only;}/*!sc*/ .cpESDm .DraftEditor-root{position:relative;}/*!sc*/ .cpESDm .DraftEditor-editorContainer{background-color:rgba(255,255,255,0);border-left:0.1px solid transparent;position:relative;z-index:1;}/*!sc*/ .cpESDm .public-DraftEditor-block{position:relative;}/*!sc*/ .cpESDm .DraftEditor-alignLeft .public-DraftStyleDefault-block{text-align:left;}/*!sc*/ .cpESDm .DraftEditor-alignLeft .public-DraftEditorPlaceholder-root{left:0;text-align:left;}/*!sc*/ .cpESDm .DraftEditor-alignCenter .public-DraftStyleDefault-block{text-align:center;}/*!sc*/ .cpESDm .DraftEditor-alignCenter .public-DraftEditorPlaceholder-root{margin:0 auto;text-align:center;width:100%;}/*!sc*/ .cpESDm .DraftEditor-alignRight .public-DraftStyleDefault-block{text-align:right;}/*!sc*/ .cpESDm .DraftEditor-alignRight .public-DraftEditorPlaceholder-root{right:0;text-align:right;}/*!sc*/ .cpESDm .public-DraftEditorPlaceholder-root{color:#9197a3;position:absolute;width:100%;z-index:1;}/*!sc*/ .cpESDm .public-DraftEditorPlaceholder-hasFocus{color:#bdc1c9;}/*!sc*/ .cpESDm .DraftEditorPlaceholder-hidden{display:none;}/*!sc*/ .cpESDm .public-DraftStyleDefault-block{position:relative;white-space:pre-wrap;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ltr{direction:ltr;text-align:left;}/*!sc*/ .cpESDm .public-DraftStyleDefault-rtl{direction:rtl;text-align:right;}/*!sc*/ .cpESDm .public-DraftStyleDefault-listLTR{direction:ltr;}/*!sc*/ .cpESDm .public-DraftStyleDefault-listRTL{direction:rtl;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ol,.cpESDm .public-DraftStyleDefault-ul{margin:16px 0;padding:0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-listLTR{margin-left:1.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-listRTL{margin-right:1.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-listLTR{margin-left:3em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-listRTL{margin-right:3em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-listLTR{margin-left:4.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-listRTL{margin-right:4.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-listLTR{margin-left:6em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-listRTL{margin-right:6em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-listLTR{margin-left:7.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-listRTL{margin-right:7.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem{list-style-type:square;position:relative;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem.public-DraftStyleDefault-depth0{list-style-type:disc;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem.public-DraftStyleDefault-depth1{list-style-type:circle;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem{list-style-type:none;position:relative;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-listLTR:before{left:-36px;position:absolute;text-align:right;width:30px;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-listRTL:before{position:absolute;right:-36px;text-align:left;width:30px;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem:before{content:counter(ol0) '. ';counter-increment:ol0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth1:before{content:counter(ol1,lower-alpha) '. ';counter-increment:ol1;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth2:before{content:counter(ol2,lower-roman) '. ';counter-increment:ol2;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth3:before{content:counter(ol3) '. ';counter-increment:ol3;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth4:before{content:counter(ol4,lower-alpha) '. ';counter-increment:ol4;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-reset{counter-reset:ol0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-reset{counter-reset:ol1;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-reset{counter-reset:ol2;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-reset{counter-reset:ol3;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-reset{counter-reset:ol4;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ltr{text-align:inherit;}/*!sc*/ .cpESDm .public-DraftStyleDefault-rtl{text-align:inherit;}/*!sc*/ data-styled.g370[id="sc-mwpquf-4"]{content:"cpESDm,"}/*!sc*/ .jhimFq{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;box-sizing:border-box;border:2px solid transparent;}/*!sc*/ .jhimFq h2{font-size:16px;}/*!sc*/ .jhimFq h3{font-size:14px;}/*!sc*/ data-styled.g371[id="sc-mo29cs-0"]{content:"jhimFq,"}/*!sc*/ .iQAUeM{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;gap:16px;}/*!sc*/ data-styled.g582[id="sc-z3f5s1-0"]{content:"iQAUeM,"}/*!sc*/ .bVFlsN{margin:0;}/*!sc*/ data-styled.g587[id="sc-1swtczx-0"]{content:"bVFlsN,"}/*!sc*/ .gpAhdE{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;line-height:normal;}/*!sc*/ data-styled.g602[id="sc-1sugbjn-0"]{content:"gpAhdE,"}/*!sc*/ .iBrhzY{margin-top:14px;}/*!sc*/ data-styled.g606[id="sc-1sugbjn-4"]{content:"iBrhzY,"}/*!sc*/ .tgEdB{margin-top:14px;}/*!sc*/ data-styled.g607[id="sc-1sugbjn-5"]{content:"tgEdB,"}/*!sc*/ Variable costs are the cost which change as a change in production volume .Hence ,if we take cost and 1,200 units of january as base , if cost of feburary matches with the cost in the table provided , its variable cost , otherwise not.Explanation:Please refer to solution in this step.Step: 2.lcWjel{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;font-size:0.75rem;box-sizing:border-box;}/*!sc*/ data-styled.g366[id="sc-mwpquf-0"]{content:"lcWjel,"}/*!sc*/ .loOCZZ{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;}/*!sc*/ .loOCZZ .align-left{text-align:left;}/*!sc*/ .loOCZZ .align-center{text-align:center;}/*!sc*/ .loOCZZ .align-right{text-align:right;}/*!sc*/ data-styled.g367[id="sc-mwpquf-1"]{content:"loOCZZ,"}/*!sc*/ .cpESDm .DraftEditor-editorContainer,.cpESDm .DraftEditor-root,.cpESDm .public-DraftEditor-content{height:inherit;text-align:initial;}/*!sc*/ .cpESDm .public-DraftEditor-content[contenteditable='true']{-webkit-user-modify:read-write-plaintext-only;}/*!sc*/ .cpESDm .DraftEditor-root{position:relative;}/*!sc*/ .cpESDm .DraftEditor-editorContainer{background-color:rgba(255,255,255,0);border-left:0.1px solid transparent;position:relative;z-index:1;}/*!sc*/ .cpESDm .public-DraftEditor-block{position:relative;}/*!sc*/ .cpESDm .DraftEditor-alignLeft .public-DraftStyleDefault-block{text-align:left;}/*!sc*/ .cpESDm .DraftEditor-alignLeft .public-DraftEditorPlaceholder-root{left:0;text-align:left;}/*!sc*/ .cpESDm .DraftEditor-alignCenter .public-DraftStyleDefault-block{text-align:center;}/*!sc*/ .cpESDm .DraftEditor-alignCenter .public-DraftEditorPlaceholder-root{margin:0 auto;text-align:center;width:100%;}/*!sc*/ .cpESDm .DraftEditor-alignRight .public-DraftStyleDefault-block{text-align:right;}/*!sc*/ .cpESDm .DraftEditor-alignRight .public-DraftEditorPlaceholder-root{right:0;text-align:right;}/*!sc*/ .cpESDm .public-DraftEditorPlaceholder-root{color:#9197a3;position:absolute;width:100%;z-index:1;}/*!sc*/ .cpESDm .public-DraftEditorPlaceholder-hasFocus{color:#bdc1c9;}/*!sc*/ .cpESDm .DraftEditorPlaceholder-hidden{display:none;}/*!sc*/ .cpESDm .public-DraftStyleDefault-block{position:relative;white-space:pre-wrap;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ltr{direction:ltr;text-align:left;}/*!sc*/ .cpESDm .public-DraftStyleDefault-rtl{direction:rtl;text-align:right;}/*!sc*/ .cpESDm .public-DraftStyleDefault-listLTR{direction:ltr;}/*!sc*/ .cpESDm .public-DraftStyleDefault-listRTL{direction:rtl;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ol,.cpESDm .public-DraftStyleDefault-ul{margin:16px 0;padding:0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-listLTR{margin-left:1.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-listRTL{margin-right:1.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-listLTR{margin-left:3em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-listRTL{margin-right:3em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-listLTR{margin-left:4.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-listRTL{margin-right:4.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-listLTR{margin-left:6em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-listRTL{margin-right:6em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-listLTR{margin-left:7.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-listRTL{margin-right:7.5em;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem{list-style-type:square;position:relative;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem.public-DraftStyleDefault-depth0{list-style-type:disc;}/*!sc*/ .cpESDm .public-DraftStyleDefault-unorderedListItem.public-DraftStyleDefault-depth1{list-style-type:circle;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem{list-style-type:none;position:relative;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-listLTR:before{left:-36px;position:absolute;text-align:right;width:30px;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-listRTL:before{position:absolute;right:-36px;text-align:left;width:30px;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem:before{content:counter(ol0) '. ';counter-increment:ol0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth1:before{content:counter(ol1,lower-alpha) '. ';counter-increment:ol1;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth2:before{content:counter(ol2,lower-roman) '. ';counter-increment:ol2;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth3:before{content:counter(ol3) '. ';counter-increment:ol3;}/*!sc*/ .cpESDm .public-DraftStyleDefault-orderedListItem.public-DraftStyleDefault-depth4:before{content:counter(ol4,lower-alpha) '. ';counter-increment:ol4;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth0.public-DraftStyleDefault-reset{counter-reset:ol0;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth1.public-DraftStyleDefault-reset{counter-reset:ol1;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth2.public-DraftStyleDefault-reset{counter-reset:ol2;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth3.public-DraftStyleDefault-reset{counter-reset:ol3;}/*!sc*/ .cpESDm .public-DraftStyleDefault-depth4.public-DraftStyleDefault-reset{counter-reset:ol4;}/*!sc*/ .cpESDm .public-DraftStyleDefault-ltr{text-align:inherit;}/*!sc*/ .cpESDm .public-DraftStyleDefault-rtl{text-align:inherit;}/*!sc*/ data-styled.g370[id="sc-mwpquf-4"]{content:"cpESDm,"}/*!sc*/ .jhimFq{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;box-sizing:border-box;border:2px solid transparent;}/*!sc*/ .jhimFq h2{font-size:16px;}/*!sc*/ .jhimFq h3{font-size:14px;}/*!sc*/ data-styled.g371[id="sc-mo29cs-0"]{content:"jhimFq,"}/*!sc*/ .iQAUeM{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;gap:16px;}/*!sc*/ data-styled.g582[id="sc-z3f5s1-0"]{content:"iQAUeM,"}/*!sc*/ .bVFlsN{margin:0;}/*!sc*/ data-styled.g587[id="sc-1swtczx-0"]{content:"bVFlsN,"}/*!sc*/ .gpAhdE{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;line-height:normal;}/*!sc*/ data-styled.g602[id="sc-1sugbjn-0"]{content:"gpAhdE,"}/*!sc*/ .iBrhzY{margin-top:14px;}/*!sc*/ data-styled.g606[id="sc-1sugbjn-4"]{content:"iBrhzY,"}/*!sc*/ .tgEdB{margin-top:14px;}/*!sc*/ data-styled.g607[id="sc-1sugbjn-5"]{content:"tgEdB,"}/*!sc*/ Calculation of February cost ( taking january cost as base )Formula :- ( January cost / January units ) x February units Maintenance :- ( $ 600 / 1,200 ) x ... See the full answer