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XYZ Corporation incurred the following costs in producing replacement auto parts. With respect to the production and sale of these auto parts, classify each cost
XYZ Corporation incurred the following costs in producing replacement auto parts. With respect to the production and sale of these auto parts, classify each cost as variable, fixed, or mixed.
- Cost of labor for hourly workers
- Factory cleaning costs
- Hourly wages of machine operators
- Computer chip purchased from a vendor
- Electricity costs, $0.20 per kilowatt-hour
- Metal
- Salary of a plant manager
- Property taxes of $165,000 per year on factory building and equipment
- Plastic
- Oil used in manufacturing equipment
- Rent on warehouse, $10,000 per month plus $25 per square foot of storage used
- Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000
- Straight-line depreciation on the production equipment
- Pension cost, $1.00 per employee hour on the job
- Packaging
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