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Help with two questions. Is it possible to get help in 1 hr since I am stuck REQUIRED: Various costs associated with diferent factory operations
Help with two questions. Is it possible to get help in 1 hr since I am stuck
REQUIRED: Various costs associated with diferent factory operations are given below. Classify each cost as being either variable or fixed with respect to the number of units produced and sold by placing an X under Variable or Fixed. Also indicate whether each cost is a selling or administrative cost OR a product cost by placing an X under Selling & Admin. Exp. or Product. Finally, for all identified Product costs only, classify each as Direct Materials, Direct Labor, or Overhead with an X under the appropriate heading. Cost Behavior Cost Item 1. Overtime paid to factory janitorial staf 2. Insurance on a building used in producing Barbie dolls 3. Cost of workers painting wheelbarrows that are sold 4. The CFO's salary 5. Water used to cool down factory machines 6. Commissions paid to sales staf 7. Fees paid to Google for advertising 8. Sugar used in cake production 9. Rent on a factory building 10. Lubricants needed for factory machines 11. Cost of plastic case in which product is sold 12. Shipping costs incurred from factory to customer 13. Insurance costs on corporate headquarters 14. Depreciation on factory lunchroom facilities 15. Personnel costs of the purchasing department 16. Salaries of factory janitorial staf 17. of laborers assembling a product 18. Cost Depreciation of air purification equipment used in the factory 19. Wages paid to assembly line workers 20. CEO's bonus Variable Fixed Type of Cost Selling & Admin. Exp. Product roduct cost For Product Costs Only Direct Material Direct Labor Mfg. Overhead Starbucks owns and operates a restaurant, ABC. His fixed costs are $21,000 per month. He serves lunches and dinners. The average total bill (excluding tax and tip) is $19 per customer meal. Queen's present variable costs average $10.60 per meal. REQUIRED: a. What is the break-even point in number of meals served per month? b. How many meals must he serve to attain a profit before taxes of $8,400 per month? c. Queen's rent and other fixed costs rise to a total of $29,925 per month and variable costs also rise to $12.50 per meal. Queen decides to raise his average price to $23. His accountant, however, says that he will likely lose 10% of his customers. To ofset the loss of customers, Queen decides to hire a pianist to play 4 hours a night at a cost of $2,000 per month. Assume that this will increase total monthly meals to 3,450. What will Queen's profit be nowStep by Step Solution
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