Question
Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Costs Incurred Production
Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production.
| Costs Incurred | ||||||||
|---|---|---|---|---|---|---|---|---|
| Production in Units | 5,000 | 10,000 | ||||||
| Production Costs | Total Cost | Cost/Unit | Total Cost | Cost/Unit | ||||
| Direct materials | $8,000 | $1.60 | $16,000 | $1.60 | ||||
| Direct labor | 9,500 | 1.90 | 19,000 | 1.90 | ||||
| Utilities | 2,000 | 0.40 | 3,300 | 0.33 | ||||
| Rent | 4,000 | 0.80 | 4,000 | 0.40 | ||||
| Maintenance | 800 | 0.16 | 1,400 | 0.14 | ||||
| Supervisory salaries | 1,000 | 0.20 | 1,000 | 0.10 | ||||
(b) Classify each cost above as either variable, fixed, or mixed.
| Production Costs | ||
|---|---|---|
| Direct materials | select a type of costs FixedMixedVariable | |
| Direct labor | select a type of costs FixedVariableMixed | |
| Utilities | select a type of costs MixedVariableFixed | |
| Rent | select a type of costs MixedFixedVariable | |
| Maintenance | select a type of costs VariableFixedMixed | |
| Supervisory salaries | select a type of costs MixedFixedVariable |
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Information Systems Audit In Banking Sector A Study Of SBI And ICICI Banks
Authors: C. Mallesha, M. Sulochana
1st Edition
6200254397, 978-6200254399
