Classifying Cost Behavior (LO1)

Classify the total costs of each of the following as variable, fixed, mixed, or step. Sales volume is the cost driver.

a. Salary of the department manager

b. Memory chips in a computer assembly plant

c. Real estate taxes

d. Salaries of quality inspectors when each inspector can evaluate a maximum of 1,000 units per day

e. Wages paid to production employees for the time spent working on products

f- — Electric power in a factory g. Raw materials used in production h. Automobiles rented on the basis of a fixed charge per day plus an additional charge per mile driven i. Sales commissions j. Depreciation on office equipment (p. 63)