QUESTION 2 (16 MARKS) Cost Descriptions A. A number of cost and measures of activity are listed below. 1 Fised/Variable 2 Cost of heating a hardware store Possible Measure of Activity RM Number of 3 4 assembled P CORE Bags shippe 5 Windsheild wiper blades installed on at an auto assembly plant Cost of tomato sauce used at a na shoo Cost of shipping bags of fertilizer to s customer at a chemical plant Cost of electricity for production equipment at the shoe manufacturer Cost of renting production equipment on monthly basis at a shoe manufaturer Cost of vaccinc used at a clinic Shoes produced 0 Shoes produced 7 8 Cost of sales of hardware store 9 Receptionist's wages at dentist's office 10 Salary of production manager at a snowboard manufacturer Vaccines administered Sales in RM Number of patients Snowboards produced Required: For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed. Put your answers in the column provided (5 marks) A number of cost are listed below: B. ANSWER Cost Objects A particular personal computer A particular residential area 1 The outpatient clinic 3 Cost Descriptions Supervisor's wages in a computer manufacturing facility Salary of president of a residential construction company Cost of tongue depressors used in an outpatient clinic at a hospital Cost lubricant oil used at the auto repair shop of an automobile dealer Manager's salary at anhotel run by a chain of hotels Cost of screws used to secure wood trim in a yacht manufacturer Accounting professor's salary The auto repair shop 4 A particular hotel 5 6 A particular yacht 7 The Accounting Department Page 5 of 8 8 Particular patient A particular pe A particular yacht Cost of a measles vaccine adminstered at an outpatient clinic at a hospital Cost of electronic navigation syatem installed in a yacht manufacturer 10 Wood used to a home 1 syatem A particular home Required: icate whether the cost is direct or indirect with respect to the cost object For each item above, indicate whether the cost is listed next to it. Put your answers in the column provided. olumn provided. (5 marks) 118ting of costs incurred at Jala Enterprise during January appears below: C. A partial listing of costs incurred at Jal Direct materials Utilities, factory Sales commissions Administrative salaries Indirect labor Advertising Depreciation of production equipment Direct labor Depreciation of administrative equipment Director's remuneration RM 107,000 11,000 35,000 115,000 29,000 148,000 46,000 109,000 39,000 140,000 Required: a) Compute the total amount of product cost listed above. (3 marks) b) Determine the total amount of period cost listed above