Your friend, Suzie Chang, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzies product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow. Factory rent $ 3,090 Company advertising 1,190 Wages paid to assembly workers 30,100 Depreciation for salespersons vehicles 2,060 Screws 580 Utilities for factory 830 Assembly supervisors salary 3,660 Sandpaper 105 Presidents salary 5,030 Plastic tubing 4,110 Paint 295 Sales commissions 1,230 Factory insurance 1,120 Depreciation on cutting machines 2,180 Wages paid to painters 8,450

Assume that Suzie Chang has decided to begin production of her outdoor childrens toy.

Required:

1 & 2. Identify each of the preceding costs as either a product or a period cost. If the cost is a product cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and also identify each of the preceding costs as variable or fixed cost. Assumes that screws, sandpaper, and paint are not worth the effort to trace to specific units.

3. Determine the total cost for each of the following: