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Please note two attachments. Question 4 ABC Manufacturing wants to determine whether its various product costs are director indirect, and variable or fixed. This information
Please note two attachments.
Question 4 ABC Manufacturing wants to determine whether its various product costs are director indirect, and variable or fixed. This information will be used to determine product unit costs. All employees are guaranteed a 40-hour work-week except factory employees, who are paid an hourly wage and can be sent home when there is no work. The following classification scheme has been developed: A. Direct variable cost B. Indirect variable cost C. Direct fixed cost D. Indirect fixed cost Using the categories shown above, indicate how each of the following costs should be classified if the cost object is a single unit of product: 1. Labor in the maintenance department 2. Glue and tacks used in production 3. Lubricating oil for production machines 4. Salary of the plant accountant 5. Oil used for inonthly preventive maintenance on production machines 6. Insurance on the plant machinery 7. Hourly factory wages 8. Wages in the materials receiving and handling department 9. Taxes on plant equipment 10. Shipping costs for direct materials Step by Step Solution
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