Question
1. The following is a list of various costs of producing sweatshirts . Classify each cost as either a variable, fixed, or mixed cost for
1. The following is a list of various costs of producing sweatshirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.
| Electricity costs of $0.025 per kilowatt-hour |
| Warehouse rent of $6,000 per month plus $0.50 per square foot of storage used |
| Thread |
| Zip used in sweatshirts |
| Janitorial costs of $2,000 per month |
| Advertising costs of $10,000 per month |
| Plant manager salary |
| Color dyes for producing different colors of sweatshirts |
| Salary of the production supervisor |
| Straight-line depreciation on sewing machines |
| Patterns for different designs. Patterns typically last many years before being replaced |
| Maintenance costs for the company's sewing machine. The cost is $2,000 per year plus $0.001 for each machine hour of use |
| Property taxes on factory, building, and equipment |
| Cotton and polyester cloth |
| Hourly wages of sewing machine operators |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started