Question 2(Mandatory)(1 point)

Saved

Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below.

Required:

For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item.

Cost Classifications

a.Variable

b.Fixed

c.Period

d.Product

e.Administrative

f.Selling

g.Manufacturing

h.Research and development

i.Direct material

j.Direct labour

k.Manufacturing overhead

Cost Items

1.Wages of T-shirt designers and painters

2.Salaries of sales personnel

3.Depreciation on sewing machines

4.Rent on the building. Part of the building's first floor is used to make and paint T-shirts. Part of it is used for the retail sales shop. The second floor is used for administrative offices and storage of raw material and finished goods.

5.Cost of daily advertisements in local media

6.Salaries of designers who experiment with new fabrics, paints, and T-shirt designs

7.Cost of hiring a pilot to fly along the beach pulling a banner advertising the shop

8.Salary of the owner's secretary

9.Cost of repairing the gas furnace

10.Cost of health insurance for the production employees

11.Cost of fabric used in T-shirts

12.Wages of shirt makers

13.Cost of new sign in front of retail T-shirt shop

14.Wages of the employee who repairs the firm's sewing machines

15.Cost of electricity used in the sewing department

Question 2 options:

Skip Toolbars for .

Show All Components