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Required: For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and
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. Cost Item Ex. Direct labor Executive salaries Factory rent 1. Property taxes, factory. 2. Boxes used for packaging detergent produced by the company. 3. Salespersons' commissions. 4. Supervisor's salary, factory. 5. Depreciation, executive autos. 6. Wages of workers assembling computers. 7. Insurance, finished goods warehouses 8. Lubricants for production equipment. 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. Manufacturing (Product) Cost Variable or Fixed Selling Cost Administrative Cost Direct Indirect Yes Variable Fixed Fixed Yes Yes < Previ 2 of 2 Next>
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