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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.

  1. Cost of labor for hourly workers
  2. Factory cleaning costs
  3. Hourly wages of machine operators
  4. Computer chip purchased from a vendor
  5. Electricity costs, $0.20 per kilowatt-hour
  6. Metal
  7. Salary of a plant manager
  8. Property taxes of $165,000 per year on factory building and equipment
  9. Plastic
  10. Oil used in manufacturing equipment
  11. Rent on warehouse, $10,000 per month plus $25 per square foot of storage used
  12. Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000
  13. Straight-line depreciation on the production equipment
  14. Pension cost, $1.00 per employee hour on the job
  15. Packaging

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