Final answer:
The total cost for hoses in the production of 2,000 furnaces, where each furnace requires a $20 hose, is a direct variable cost because it varies with the production volume, totaling $40,000.
Step-by-step explanation:
When considering the cost implications for hoses in the production of furnaces, where each of the 2,000 furnaces requires a $20 hose, the total cost for hoses is a direct variable cost. This is because the expense is directly tied to the production volume and changes in proportion with the number of units produced. As production increases, you add variable costs to fixed costs, and the total cost is the sum of these two. The total variable cost can be calculated by multiplying the cost of one hose ($20) by the quantity of furnaces (2,000), resulting in a total of $40,000 for hoses. Fixed costs, such as rent or salaries for permanent staff, would remain the same regardless of the production level, as they are incurred even when the output is zero. Thus, in this case, the cost of the hoses increases with each additional furnace produced and is not considered fixed.
The total cost for hoses in this scenario would be considered a direct variable cost. A direct variable cost is a cost that varies with the level of production or output. In this case, the cost of hoses is directly related to the number of furnaces produced, as each furnace requires a $20 hose. Therefore, as the number of furnaces produced increases, the cost for hoses will also increase.