Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 Administrative Variable or Fixed Indirect Cost Item Selling Cost Direct Cost Ex. Direct labor Variable Yes Executive salaries Fixed Yes Factory rent Fixed Yes 1. Property taxes, factory. Boxes used for packaging detergent produced by the company. 2. Salespersons' commissions. 3. 4. Supervisor's salary, factory. Depreciation, executive autos. 5. 6. Wages of workers assembling computers. 7. Insurance, finished goods warehouses. Lubricants for production equipment. 8. 9. Advertising costs. 10. Microchips used in producing calculators. 11. 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

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

Cost Accounting

Authors: James A. Cashin, Ralph S. Polimeni, Sheila Handy

3rd Edition

0070110263, 9780070110267

More Books

Students also viewed these Accounting questions