Question
The following is a list of various costs of producing sweatshirts. Classify each cost as either a variable, fixed, or mixed cost for units produced
The following is a list of various costs of producing sweatshirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.
(a) | Lubricants used to oil machinery. |
(b) | Warehouse rent of $6,000 per month plus $.50 per square foot of storage used. |
(c) | Thread. |
(d) | Electricity costs of $.025 per kilowatt-hour. |
(e) | Janitorial costs of $2,000 per month. |
(f) | Advertising costs of $10,000 per month. |
(g) | Sales salaries. |
(h) | Color dyes for producing different colors of sweatshirts. |
(i) | Salary of the production supervisor. |
(j) | Straight-line depreciation on sewing machines. |
(k) | Patterns for different designs. Patterns typically last many years before being replaced. |
(l) | Hourly wages of sewing machine operators. |
(m) | Property taxes on factory, building, and equipment. |
(n) | Cotton and polyester cloth. |
(o) | Maintenance costs with sewing machine company. The cost is $2,000 per year plus $.001 for each machine hour of use. |
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