St John's Company Incurred the Following Costs for the Months

question 114

Multiple Choice

St. John's Company incurred the following costs for the months of March and April.
$\begin{array}{lrr}\text { Type of Cost } &\text { March }&\text { April }\\\text { Insurance } & \$ 5,000 & \$ 5,000 \\\text { Utilities } & 4,000 & 5,000 \\\text { Depreciation } & 3,500 & 3,500 \\\text { Materials } & 10,000 & 20,000\end{array}$
-Refer to the Figure.If output was 5,000 units in March and 10,000 units in April,which of the following can be assumed?

• A)Utilities and materials are variable costs.
• B)Utilities, insurance, and depreciation are fixed costs.
• C)Insurance and depreciation are mixed costs.
• D)Materials are the only variable cost.

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