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H&B manufactures sofas For distribution to several major retail chains. The following costs are incurred in the production and sales of sofas: a. Rental costs
H&B manufactures sofas For distribution to several major retail chains. The following costs are incurred in the production and sales of sofas: a. Rental costs of warehouse, $10,000 per month. b. Cartons used to ship sofas. c. Rent on experimental equipment, $25 of every sofa produced d. Salary of productioo vice-president. e. Salary of designe f. Hourly wages of sewing machine operators. g. Springs. h. Fabric for sofa coverings i. Consulting fee of 5,000 paid to efficiency specialists. j. Electricity costs of $.02 per kilowatt-hour. k. Property taxes on phoperty, plant, and equipment. L. Legal fees paid to atomeys in defense of the company in a paten infringement suit, $10,000 plus $75 per hour. m. Straight-line depreclation on factory equipment n. Wood for framing the sofas. o. Insurance premiuns on property, plant, and equipment, $5,000 per year plus $20 per S10,000 of inurdd value over $8,000,000 p. Foam rubber for cushion fillings. q. Sewing supplies Employer's FICAx on controller's salary of $75,000. s. Salesperson's salabt s 12,000 plus 5% of the selling price of each sofa sold. t. Janitorial supplies $10 for each sofa produced. Instructions Classify the preceding costs as either fixed, variable or mixed. Use the following tabular heading and place an "X" the appropriate column. Identify each cost by letter in the Cost column Cost Fixed Cost Variable Cost Mixed Cost
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