Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 (1 mark) Sumitomo Cable manufactures various types of aluminum and copper cables which it sells directly to retail outlets through its distribution

image text in transcribed

Question 4 (1 mark) Sumitomo Cable manufactures various types of aluminum and copper cables which it sells directly to retail outlets through its distribution channels. The manufacturing process for producing cables includes a process called wire draw in which the aluminum and copper rods are pulled through a series of synthetic dies, which gradually decrease in size. The wires are then passed through an extruder, where either a single or a double coating of plastic is applied. These insulated wires are twisted into pairs by the Twisting and Stranding Department. The final shape is given to the wires by the Jacketing and Packaging department after carrying out the process of quality control. Required: Costs involved in the different processes are listed below. For each cost, indicate whether it is a direct variable, direct fixed, indirect variable, or indirect fixed cost, assuming that the units of production of each kind of wire" is the cost object. Costs: Aluminum and copper rods Insulating materials Wages for wire draw Depreciation on machineries Depreciation on factory building Insurance on factory building Consumable stores and dies Wages for machine operators Power Quality control Repairs to machines Normal wastages and spoilages Store-keeper's salary Material testing Materials used by jacketing and packaging department Factory general utilities Fuel for factory generator Supervisors' salaries

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

Managerial Accounting Creating Value in a Dynamic Business Environment

Authors: Ronald W. Hilton

9th edition

78110912, 978-0078110917

More Books

Students also viewed these Accounting questions