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Managerial Accounting

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Moderate

Identifying Variable Costs

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In February, Darby Company produced 14,000 units and had total direct material costs of \$102,900. In March, Darby Company produced 15,500 units and had total direct material costs of \$113,925.

Based on these two observations, Springfield's direct material costs could best be described as:

A

completely fixed.

B

completely variable.

C

mixed.

D

uncontrollable.