Question
Classify costs Following is a list of various costs incurred in producing toy robotic helicopters. With respect to the production and sale of these helicopters,
Classify costs
Following is a list of various costs incurred in producing toy robotic helicopters. With respect to the production and sale of these helicopters, classify each cost as either variable, fixed, or mixed.
Property taxes, 210,000 per year on factory building and equipment
Janitorial costs, $5,000 per month
Metal
Packaging
Salary of plant manager
Oil used in manufacturing equipment
Cost of labor for hourly workers
Plastic
Straight-line depreciation on the production equipment
Computer chip (purchased from a vendor)
Electricity costs, $0.10 per kilowatt-hour
Rent on warehouse, $12,000 per month plus $20 per square foot of storage used
Pension costs, $0.75 per employee hour on the job
Hourly wages of machine operators
Property insurance premiums, $2,000 per month plus $0.008 for each dollar of property over $1,000,000
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