Answered step by step
Verified Expert Solution
Question
1 Approved Answer
AE 10.1 Gatton Foods Ltd manufactures a range of canned meat. Below is a selection of the costs accumulated by its accounting department. Assuming the
AE 10.1 Gatton Foods Ltd manufactures a range of canned meat. Below is a selection of the costs accumulated by its accounting department. Assuming the cost object is the product, classify each of these costs as direct or indirect. Also classify each cost as variable or fixed in respect of its expected reaction to changes in volume of production. CHOOSE THE RIGHT ANSWER: (Direct OR Indirect) | (Variable OR Fixed)
- Raw meat acquired for processing:Direct | Variable
- Purchase of gas for cooking ovens:Direct | Variable
- Cost of tin cans :Direct | Variable
- Repair costs for canning machines :Indirect | Variable
- Wages for plant security:Indirect | Fixed
- Depreciation of cooking ovens :Indirect | Variable
- Freight cost of raw materials inwards :Direct | Variable
- Cost of building insurance :Indirect | Fixed
- Cost of can labels:Direct | Variable
- Cost of cleaning materials for factory:Indirect | Fixed
- General manager's salary :Indirect | Fixed
- Factory supervisor's salary :Indirect | Fixed
- Annual licence fee for health regulations :Indirect | Fixed
Please note, I made a mistake and not sure where the mistake is as I scored 4.81/5 marks.
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