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.
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) '. 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.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 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