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help with explanation Question 2: Cost behavior types Classify the following items as variable (V), fixed (F), or mixed (M): Rent for the factory building

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Question 2: Cost behavior types Classify the following items as variable (V), fixed (F), or mixed (M): Rent for the factory building Ov OF OM Depreciation on production equipment Ov OF OM Production managers' salaries Ov OF OM Production workers' wages Ov OF OM Cost of materials used in production Ov OF OM Fire insurance for the plant Ov OF OM Sales commissions (3% of sales) OV OF OM Sales managers' total compensation (salary + sales commissions) OV OF OM Question 3: Computations for fixed and variable costs At current sales volume of 100 units, fixed costs (FC) are $4 per unit and variable costs (VC) are $10 per unit. a) Compute total fixed costs at current sales volume. total FC = b) Suppose that sales volume increases to 125 units. At this new volume, total FC = FC per unit = VC per unit = total VC = + c) Write down the total cost equation: TC = * volume (e.g., if TC=500+2*volume, enter 500 in the first box and 2 in the second box) Predict total costs at sales volume of 80 units: Predict total costs at sales volume of 120 units: d) When sales volume increases by 1 unit, total costs increase by unit VC = $10 increase by unit FC = $4 O increase by unit cost $14 O not enough information Question 1: Product and period costs a) In a manufacturing firm, product costs include: all fixed costs O all non-manufacturing costs O all manufacturing costs O all variable costs all GAAP costs period costs include: all manufacturing costs O all variable costs O all non-manufacturing costs all fixed costs all non-GAAP costs b) Classify the following items as product or period costs: Rent for the factory building product period Rent for the sales office O product period Depreciation on production equipment O product Operiod Depreciation on sales office equipment O product Operiod Production supervisor's salary product period

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