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Answer this question fully: Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors,

Answer this question fully:

Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzies product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow:

Factory rent $ 3,200
Company advertising 1,000
Wages paid to assembly workers 30,000
Depreciation for salespersons vehicles 2,000
Screws 500
Utilities for factory 900
Assembly supervisors salary 3,500
Sandpaper 150
Presidents salary 6,000
Plastic tubing 4,200
Paint 250
Sales commissions 1,200
Factory insurance 1,000
Depreciation on cutting machines 2,000
Wages paid to painters 7,500

Assume that Suzie Whitson has decided to begin production of her outdoor childrens toy.

Required: 1 & 2. Identify each of the preceding costs as either a product or a period cost. If the cost is a product cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and also identify each of the preceding costs as variable or fixed cost.

Costs Type of cost Cost head Cost classification
Factory rent
Company advertising
Wages paid to assembly workers
Depreciation for salespersons vehicles
Screws
Utilities for factory
Assembly supervisors salary
Sandpaper
Presidents salary
Plastic tubing
Paint
Sales commissions
Factory insurance
Depreciation on cutting machines
Wages paid to painters

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