Select cost information for Seacrest Enterprises is as follows: 1,000 units of output 5,000 units of output TotalCost/Unit TotalCost/UnitDirect materials$5,000$5.00 $25,000$5.00Utilities expense$1,000$1.00 $3,750$0.75Rent expense$4,000$4.00 $4,000$0.80Based on this information:
A. Utilities expense is a mixed cost and rent expense is a fixed cost.
B. Utilities expense is a mixed cost and rent expense is a variable cost.
C. Direct materials is a fixed cost and utilities expense is a mixed cost.
D. Both direct materials and utilities expense are mixed costs.
E. Both direct materials and rent expense are variable costs.
Answer: A
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