Select cost information for Klondike Corporation is as follows:

1,000 units of output 2,000 units of output Total Cost/Unit Total Cost/Unit Direct materials $4,000 $4.00 $8,000 $4.00 Rent expense $2,000 $2.00 $ 2,000 $1.00 Based on this information: A. Both direct materials and rent expense are variable costs. B. Direct materials is a fixed cost and rent expense is a variable cost. C. Both direct materials and rent expense are fixed costs ... D. Direct materials is a variable cost and rent expense is a fixed cost. E. Both direct materials and utilities expense are mixed costs

Question

Business

Jean Erickson

9 November, 15:19

Select cost information for Klondike Corporation is as follows:

1,000 units of output 2,000 units of output Total Cost/Unit Total Cost/Unit Direct materials $4,000 $4.00 $8,000 $4.00 Rent expense $2,000 $2.00 $ 2,000 $1.00 Based on this information: A. Both direct materials and rent expense are variable costs. B. Direct materials is a fixed cost and rent expense is a variable cost. C. Both direct materials and rent expense are fixed costs ... D. Direct materials is a variable cost and rent expense is a fixed cost. E. Both direct materials and utilities expense are mixed costs

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Answers (1)

Know the Answer?

Jaylee Jimenez · Answer 1

D. Direct materials is a variable cost and rent expense is a fixed cost.

Explanation:

As clearly seen from the data the direct material cost is varying but the rent cost is fixed cost.