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Answer Should be Hand written Hamim Company is a textile company. It makes winter clothes. Selected costs are given below: 1. The sweaters are made
Answer Should be Hand written
Hamim Company is a textile company. It makes winter clothes. Selected costs are given below: 1. The sweaters are made of yarn that costs $10 per sweater. 2. The workers are paid $2 per sweater they make. 3. The factory supervisor's salary is $10,000 per month. 4. The energy cost is 0.5 per hour. 5. The depreciation on the machines totals $5,000 per year. 6. The salary of the CEO of the company is $30,000 per month. 7. The company spends $10,000 per year to advertise its products. 8. Salespersons are paid a commission of $1 per sweater sold. 9. The company could rent its factory space for $50,000 per year instead of making winter clothes. 10. Salaries of personnel who work in the finished goods warehouse is $1,000 per month. Required: i. For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost. For each cost, indicate whether it would most likely be classified as variable cost or fixed costStep by Step Solution
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