Assume you are a consultant performing work for two different companies. Each company has asked you to help them identify the behavior of certain costs.

1. Identify each of the following costs for Hwang Company, a producer of ski boats, as variable (V), fixed (F), or mixed (M):

   1. _____Salary of production manager
   2. _____Materials required for production
   3. _____Monthly rent on factory building
   4. _____Hourly wages for assembly workers
   5. _____Straight-line depreciation for factory equipment
   6. _____Annual insurance on factory building
   7. _____Invoices sent to customers
   8. _____Salaries and commissions of salespeople
   9. _____Salary of chief executive officer
   10. _____Company cell phones with first 50 hours free, then 10 cents per minute

2. Identify each of the following costs for Rainier Camping Products, a maker of backpacks, as variable (V), fixed (F), or mixed (M):

   1. _____Hourly wages for assembly workers
   2. _____Fabric required for production
   3. _____Straight-line depreciation on factory building
   4. _____Salaries and commissions of salespeople
   5. _____Lease payments for factory equipment
   6. _____Company cell phones with first 80 hours free, then 8 cents per minute
   7. _____Invoices sent to customers
   8. _____Salary of production manager
   9. _____Salary of controller (accounting)
   10. _____Electricity for factory building
   11. How might the managers of these companies use the cost behavior information requested?