Insert Table Chart Text Shape Page Media Comment L Page 54 problem 1-23 cost classification Usted below are costs found in various organization 1. Property taxes, factory 2. Boxes used for packing detergent produced by the company 3. Salespersons' commissions 4. Supervisors' salary, factory 5. Depreciation, executive autos 6. Wapes of workers assembling computers 7. Insurance, finished goods warehouse 8. Lubricants for production equipment 9. Advertising costs 10. Microchips used in producing calculators 11. Shipping costs on merchandise sold 12. Magazine subscription, factory lunchroom 13. Thread in a garment factory 14. Executive life insurance 15. Ink used in textbook production 16. Fringe benefits, materials handling workers 17. Yarn used in sweater production 18. Wages of receptionist, executive officers Required: For each cost item, indicate whether it would be variable or feed with respect to the number of units produced and sold; and then whether it is would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product. Prepare an answer sheet with column headings as shown below. Cost Item Variable or Selling cost Administrative Manufacturing (Product) cost Fixed cost Direct Indirect II. Page 47 Exercise 1-4 Fixed and variable cost behavior Espresso Express operates a number of espresso coffee stands in busy suburban malls. The freed weekly expense of a coffee stand is $12000, and the variable cost per cup of coffee served is $0.22 Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the Indicated levels of activity. Round off the average cost per cup of coffee to the nearest tenth of a cent. Cup of coffee served in a week 2100 2200 2000 Fixed cost Variable cost Total cost Average cost per cup of coffee served 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Explain