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1. i) Below are listed various costs that are found in a restaurant that specializes in local food. The cost of ingredients used in food
1. i) Below are listed various costs that are found in a restaurant that specializes in local food. The cost of ingredients used in food preparation. The costs of complying with health and hygiene factors in the kitchen. ii) The salaries of the chefs of the restaurant. iv) Advertisement expense of the restaurant. The rent on the facility that houses the restaurant. vi) The activities of the chefs are supervised by a manager who is paid $1,000 per month. vii) Shipping cost of foods delivered to customers. viii) Depreciation on the car of the executive. ix) The cost of gasoline consumed in the kitchen. x) Life insurance of the chief chef of the restaurant. Instructions: Classify the costs according to (variable co fixed cost) and according to product cost (Direct material, direct labor and manufacturing overhead)and period cost(selling cost and administrative cost). 1. i) Below are listed various costs that are found in a restaurant that specializes in local food. The cost of ingredients used in food preparation. The costs of complying with health and hygiene factors in the kitchen. ii) The salaries of the chefs of the restaurant. iv) Advertisement expense of the restaurant. The rent on the facility that houses the restaurant. vi) The activities of the chefs are supervised by a manager who is paid $1,000 per month. vii) Shipping cost of foods delivered to customers. viii) Depreciation on the car of the executive. ix) The cost of gasoline consumed in the kitchen. x) Life insurance of the chief chef of the restaurant. Instructions: Classify the costs according to (variable co fixed cost) and according to product cost (Direct material, direct labor and manufacturing overhead)and period cost(selling cost and administrative cost)
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