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Canada Plum Co was started by a plum farmer who wanted to expand her product line to add baked goods for their drive by customers.
Canada Plum Co was started by a plum farmer who wanted to expand her product line to add baked goods for their drive by customers. The company is based in Pelham, Ontario and makes plum pies. The following is a list of costs that are incurred at the Pelham factory. The cost driver is the number of plum pies produced. Culinary students on summer job programs form the majority of the direct labour pool and are paid on an hourly basis. Other factory workers are salaried. Classify each of the following costs as variable, fixed, mixed or step costs: Factory receptionist Plums to make the plum pies with Factory security costs from an external vendor who charges a base fee per month plus a standard fee per visit Factory direct labour costs Utilities for the factory DO 1. Variable cost End of harvest party for all factory workers which is prebooked in advance each year and includes venue rental, food and free plum pies. 2. Fixed cost 3. Mixed cost 4. Step cost Lease costs for the packaging machines which can each package 800 pies per month Rent for the factory DO Depreciation for the mixing and stewing machines (calculated on a straight line basis) Factory supervisor costs (each supervisor can supervise either the day shift or the evening shift if a second shift is required)
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