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10 Required: For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and
10 Required: For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product. 9 Manufacturing (Product) Cost points Variable or Direct Indirect Cost Item Selling Cost Administrative Fixed Cost Yes Direct labor Variable eBook Fixed Yes Executive salaries Fixed Yes Factory rent Fixed Yes Print 1 . Property taxes, factory. 2. Variable Yes Boxes used for packaging detergent produced by the company. n 3 Salespersons' commissions. Variable Yes References Yes 4 Supervisor's salary, factory. Fixed Depreciation, executive autos. Fixed Yes 5. 6. Variable Yes Wages of workers assembling computers. 7. Insurance, finished goods warehouses. Fixed Yes Yes 8. Lubricants for production equipment. Variable 9. Advertising costs Fixed Yes 10. Microchips used in producing calculators Variable Yes 11 Shipping costs on merchandise sold Variable Yes Fixed Yes 12. Magazine subscriptions, factory lunchroom. 13 Thread in a garment factory. Variable Yes 14 Executive life insurance. Fixed Yes Ink used in textbook production. Variable Yes 15 Variable Yes 16 Fringe benefits, materials handling workers. 17. Yarn used in sweater production. Variable Yes Wages of receptionist, executive offices Fixed Yes 18
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