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Kendall Ltd., a manufacturing firm, manufactures chains for the Sunny Motorcycle company. The company has supplied information from its accounting records for the last four
Kendall Ltd., a manufacturing firm, manufactures chains for the Sunny Motorcycle company. The company has supplied information from its accounting records for the last four months. January February March April Number of chains manufactured 32,500 39,000 28,600 37,400 Plant overhead January February March April Plant supervision wages $122,900 $ 122,900 $122,900 $122,900 Plant rent 70,200 70,200 70,200 70,200 Utilities (electricity/water) 58,500 64,400 52,900 65,000 Plant repairs & maintenance 45,500 49,900 44,600 50,500 CNC machine tool sharpening 9,750 11,700 8,580 11,220 CNC machine depreciation 48,800 48,800 48,800 48,800 Total plant overhead $355,650 $367,900 $ 347,980 $368,620 Classify each factory overhead costs as fixed, variable or mixed, using number of chains manufactured as the activity driver (also called the cost driver). Classify each factory overhead costs as fixed, variable or mixed, using number of chains manufactured as the activity driver (also called the cost driver). Plant supervision wages. Plant repairs & maintenance. > Plant rent. 1. Fixed 2. Variable Utilities (electricity/water). CNC machine depreciation. CNC machine tool 3. Mixed sharpening
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