Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Listed below are costs found in various organizations. PLEASE FILL THE PROBLEM Required: For each cost item, indicate whether it would be variable or fixed

Listed below are costs found in various organizations. PLEASE FILL THE PROBLEM

Required:

For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it 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.

image text in transcribed

Manufacturing (Product) Cost Cost Item Selling Cost Variable or Fixed Variable Administrative Cost Direct Indirect Direct labor Yes Fixed Yes Executive salaries Factory rent Fixed Yes Fixed Yes | Yes Variable Variable Fixed Yes Yes Fixed Variable Yes Yes Fixed Variable Yes Yes Property taxes, factory. 2. |Boxes used for packaging detergent produced by the company. 3. Salespersons' commissions. Supervisor's salary, factory. Depreciation, executive autos. |Wages of workers assembling computers. 7. Insurance, finished goods warehouses. Lubricants for production equipment. Advertising costs. 10. Microchips used in producing calculators. |Shipping costs on merchandise sold. 12. Magazine subscriptions, 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 offices. Fixed Variable Variable Yes 11. Yes Fixed Variable Fixed Yes Yes Yes Variable Variable Yes Yes Fixed Yes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

EDI Security Control And Audit

Authors: Albert J. Marcella Jr, Sally Chan, John Merriam

1st Edition

0890066108, 978-0890066102

More Books

Students also viewed these Accounting questions

Question

Identify four applications of HRM to healthcare organizations.

Answered: 1 week ago