Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(PLEASE NOTE : THIS QUESTION IS ALREADY ANSWERED BUT THERE ARE MISTAKES IN IT. I CANNOT FIND THE MISTAKES PLEASE HELP ME ANSWER THIS QUESTION

image text in transcribedimage text in transcribed

(PLEASE NOTE : THIS QUESTION IS ALREADY ANSWERED BUT THERE ARE MISTAKES IN IT. I CANNOT FIND THE MISTAKES PLEASE HELP ME ANSWER THIS QUESTION CORRECTLY)

Problem 1-23 Cost Classification [LO1-1, LO1-3, LO1-4] Listed below are costs found in various organizations. 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 Manufacturing (Product) Cost Variable or Fixed Administrative Cost Cost Item Selling Cost Direct Indirect Ex. Direct labor Variable Yes Executive salaries Fixed Yes Factory rent Fixed Yes 1. Property taxes, factory. Fixed Yes Boxes used for packaging detergent produced by the company. Variable 2 Yes 3. Salespersons' commissions. Variable Yes Supervisor's salary, factory. 4 Fixed Yes Yes Depreciation, executive autos. Fixed Yes 6. Wages of workers assembling computers. Variable Yes Insurance, finished goods warehouses. 7. Fixed Yes Lubricants for production equipment. 8. Fixed Yes 9. Advertising costs. Variable Yes 10. Microchips used in producing calculators. Variable Yes 11. Shipping costs on merchandise sold. Variable Yes 12. Magazine subscriptions, factory lunchroom. Fixed Yes Thread in a garment factory. 13 Variable Yes 14. Executive life insurance. Fixed Yes 15. Ink used in textbook production. Variable Yes 16. Fringe benefits, materials handling workers. Variable Yes 17. Yarn used in sweater production. Variable Yes 18. Wages of receptionist, executive offices. 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

Step: 3

blur-text-image

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

From Fish Hook To Audit Tool An Autobiography

Authors: Aftab Alam Khan

1st Edition

1099497515, 978-1099497513

More Books

Students also viewed these Accounting questions