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HELP Dow Jones is a furniture company that assembles two types of chairs: Recliners and Rockers. Separate assembly lines are used for each type of
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Dow Jones is a furniture company that assembles two types of chairs: Recliners and Rockers. Separate assembly lines are used for each type of chair. Classify each cost item to: a. Direct (D) or indirect (1) costs for the total number of Recliners assembled. b. Variable (V) or fixed (F) costs depending on how total costs change as the total number of Recliners assembled changes. (lf in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the total number of Recliners assembled). C. Manufacturing (M) or non-manufacturing (NM) costs (a) (b) (c) Dor V or Mor I F NM Cost Item A. Cost of fabric used on Recliners B. Salary of public relations manager for Dow Jones Furniture Annual convention for furniture manufacturers that Dow Jones C. Furniture attends D. Electricity costs for Recliner assembly line (single bill covers entire plant) E. Wages paid to temporary hourly paid assembly-line workers hired in periods of high demands for Recliner F. Annual fire-insurance policy cost for the plant Wages (salary) paid to plant manager who oversees the assembly lines G. for both chair types Step by Step Solution
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