classification option are has following 1 fixed 2 Variable 3 mixed

classification option 1. fixed 2. mixed 3.Variable

1 3 Any work required in an Appendix must be done in the blue boxes. Please read the narrative carefully to see what Elliot is requesting. 5 Appendix 1 7 Production in units: 8 Terrific Tank e Run Like the Wind Pullover L0 Live in Leggings 1 Monthly Production -2 210 180 621 1,011 2. Mixed Costs 3. Variable cost per unit Product vs. Period /month 1. Classification Fixed Portion Variable Portion $ 2,176 $ 3,688 $ 9,725 $ 3,247 1,820 $ $ $ 4,713 2,063 3 Costs: 4 Fabric - Terrific Tank (note 1) Fabric - Run Like the Wind Pullover 5 Fabric - Live in Leggings 6 7 Tailor's hourly wages - Terrific Tank (note 2) Tailor's hourly wages - Run Like the Wind Pullover -8 9 Tailor's hourly wages - Live in Leggings 0 Tailor supervisor's salary (note 3) Inventory and fulfillment manager's salary 1 (note 4) -2 Shipping salary (note 5) 3 Receiving clerk salary (note 6) -4 Rent on factory space (note 7) -5 Rent on office space (note 7) Insurance - factory (note 8) 7 Insurance - office space (note 8) Utility costs (note 9) 8 Office supplies -9 Maintenance on building (note 10) 0 1 Depreciation on office equipment (note 11) 2 Depreciation on factory equipment (note 11) 3 Rent on factory equipment (note 12) 4 Advertising - Yoga Campaign (note 13) 5 Advertising - Run Club Campaign (Note 14) =6 Shipping expense (Note 15) =7 Bookkeepers' salary (Note 16) 8 President's salary (Note 17) 9 $ $ $ $ $ 6 $ $ $ $ $ $ $ 1,997 1,446 1,826 7,804 2,667 1,975 147 2,335 1,100 3,600 1,800 2,400 3,469 1,446 1,486 1,121 1,658 4,764 $ $ $ $ $ $ 46 39 40 Notes 41 Note 1: All fabric is outsourced from our supplier in Taiwan. 42 Note 2: There are three tailors who each work on a selected product. They come in as needed and are paid hourly. 43 Note 3: The supervisor performs quality control. 44 Note 4: The inventory and fulfillment manager manages the fabric that comes from Taiwan and checks all outgoing shipments. 45 Note 5: The shipping clerk is paid on a monthly basis and fullfills all of the outgoing orders. Note 6: The receiving clerk goes through all shipments of raw materials received from the supplier in Taiwan and sorts these shipments by the product they pertain to. They are paid $1000/month, plus an additional amount based on the number of shipments received. This cost is allocated to the number of products produced per month. 47 Note 7: The building is 2,000 sq. feet. 500 sq. feet is dedicated to the "head office" space 48 Note 8: This is insurance on the building, the building is 2,000 sq. feet. 500 sq. feet is dedicated to the "head office" space 49 Note 9: Utility costs are $1,500/month fixed and the remainder varies based on the number of items produced. This is allocated based on number of units produced. 50 Note 10: Maintenance costs are $1,200/month fixed and the remainder varies based on the number of items produced. This is allocated based on number of units prodi 51 Note 11: Depreciation is calculated using the straight-line method 52 Note 12: Rent is paid monthly for the sewing machines 53 Note 13: The Yoga Campaign advertises the Terrific Tank and Live in Leggings 54 Note 14: The Run Club Campaign advertises the Run Like the Wind Pullover 55 Note 15: Shipping varies based on the number of orders received per month. This is allocated based on the number of units produced. 56 Note 16: The bookkeeper, Kendra, goes through the books and prepares financial statements on a monthly basis. 57 Note 17: Elliot's monthly salary 58 59 Hint! Elliot wants you to summarize the cost classifications in your presentation. 60 Prepare a pivot table, bar chart or pie chart! 61 62 63 64