Q12. ButterCup is a local bakery that supplies coffee shops and eateries.

Required:

Classifv each cost as being either variable or fixed with respect to the quantity of baked goods supplied. Also, indicate whether each cost would typically be treated as a direct cost or an indirect cost with respect to the quantity of baked goods supplied.

Cost Item

Cost

Behaviour

To Quantity of Baked Goods Supplied.

Cost Item	Cost Behaviour	To Quantity of Baked Goods Supplied
Account manager's salary.
Rent on building.
Flour used in the making of croissants.
Bakery manager's salary.
Wages of bakers who are paid on a piecework basis
Depreciation of commercial ovens used in baking
Insurance on the building.

Q13.

The following data (in thousands of dollars) have been taken from the accounting records of Croft Corporation for the most recent year.

Administrative Expenses	$300
Direct Labour	400
Finished Goods inventory, beginning	240
Finished Goods inventory, ending	320
Manufacturing overhead	460
Purchases of raw materials	240
Raw material inventory, beginning	80
Raw material inventory, ending	140
Sales	1,980
Selling expenses	280

Work in process inventory, beginning	140
Work in process inventory, ending	100

The cost of goods sold for the year (in thousands of dollars) was:

Multiple Choice

A. $1,400.

B. $1,000.

C. $1.160

D. $1,320.