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| | A f 16', 000 Units | | Average Cost Total I per Unit Costs {Direct Materials $6.00 $50,000.00 |Direct Labor $3.50 $35,000.00 {Variable

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| | A f 16', 000 Units | | Average Cost Total I per Unit Costs {Direct Materials $6.00 $50,000.00 |Direct Labor $3.50 $35,000.00 {Variable Manufacturing Overhead $1.50 $15,000.00 {Fixed Manufacturing Overhead $4.00 $40,000.00 {Fixed Selling Expense $3.00 $30,000.00 {Fixed Administrative Expense $2.00 $20,000.00 |Sales Commissions $1.00 $10,000.00 {Variable Administrative Expense $0.50 $5,000.00 {Costs: Direct vs. Indirect, Manufacturing vs. Non-Manufacturing, Product vs. Period, Variable vs Fixed | {Direct Costs: easily, conveniently and cost effectively traceable to specified cost object {Indirect Costs: NOT easily, conveniently and cost effectively traceable to a specified cost object | {Manufacturing Costs: Costs incurred to manufacture Direct Mafeals: any material (raw or finished) that goes into the finished product, an integral part of finished produr Direct Labor: "touch labor", the workers typically touch the product | I | Manufacrunirg Overhead: ALL manufacturing costs that isn't Direct Material or Direct Labor, indirect manufacturing {Non-Manufacturing Costs: Costs incurred for the non-manufacturing activities | | | | Selling Costs: ALL costs incurred to secure customer orders and get the finished product to the customer Administrative Costs: ALL costs associated with general management, organization as a whole {Product Costs: ALL costs included in aquiring or making a product, attach to a unit of product (inventoriable costs) {Period Costs: ALL costs that are NOT product costs (selling and administrative) | {Variable Costs: VARIES in total, in direct proportion to changes in activity I Variable Cost per Unit satys constant {Fixed Costs: remains constant in totaf | Average Fixed Cost per Unit has an opposite relationship with changes activity {Mixed Costs: contain both variable and fixed elements, semi-variable { express the relationship and level of activity Y = a + bX or Y = mX + b

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