Joe Reynolds painted four houses during April 2013. For these jobs, he spent $ 2,400 on paint,

Question:

Joe Reynolds painted four houses during April 2013. For these jobs, he spent $ 2,400 on paint, $ 160 on mineral spirits, and $ 300 on brushes. He also bought two pairs of coveralls for $ 100 each; he wears coveralls only while he works. During the first week of April, Reynolds placed a $ 200 ad for his business in the classifieds. He hired an assistant for one of the painting jobs; the assistant was paid $ 25 per hour and worked 50 hours.
Being a very methodical person, Reynolds kept detailed records of his mileage to and from each painting job. The average operating cost per mile for his van is $ 0.70. He found a $ 30 receipt in his van for a metropolitan map that he purchased in April. He uses the map as part of a contact file for referral work and for bids that he has made on potential jobs. He also had $ 30 in receipts for bridge tolls ($ 2 per trip) for a painting job he completed across the river.
Near the end of April, Reynolds decided to go camping, and he turned down a job on which he had bid $ 6,000. He called the homeowner long distance (at a cost of $ 2.20) to explain his reasons for declining the job.
Using the following headings, indicate how to classify each of the April costs incurred by Reynolds. Assume that the cost object is a house-painting job.
Type of Cost Variable Fixed Direct Indirect Period Product

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting Foundations And Evolutions

ISBN: 9781618533531

10th Edition

Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn

Question Posted: