Information for Hans Gruber, Inc

Multiple Choice

Information for Hans Gruber, Inc. for the current and prior months is provided below: How would the costs for "Rent Expense" and "Factory Labor" be classified?

A) Rent Expense is a variable cost and Factory Labor is a fixed cost.
B) Rent Expense is a fixed cost and Factory Labor is a variable cost.
C) Both Rent Expense and Factory Labor are variable costs.
D) Both Rent Expense and Factory Labor are fixed costs.