Magic City Enterprises manufactures a beautiful bookcase Lis

Magic City Enterprises manufactures a beautiful bookcase. Listed below are a number of costs incurred. Identify each cost as either fixed or variable; product or period. If the cost is a product cost, then state whether it would be considered a direct or indirect cost.

Factory Rent

Advertising

Packing Supplies for Shipping

Factory Security Guard

Wages of Employees Who Sand the Wood

Administrative Assistant in Corporate Office

Paper Towels in the Men\'s Room in the Factory

Executive Jet

Lumber

Depreciation on Factory Tools (Straight-Line)

Fixed or Variable - Product / Indirect

Fixed - Period

Fixed - Product / Indirect

Variable - Product / Direct

Variable - Period

-       A.       B.       C.       D.       E.    Factory Rent       -       A.       B.       C.       D.       E.    Advertising       -       A.       B.       C.       D.       E.    Packing Supplies for Shipping       -       A.       B.       C.       D.       E.    Factory Security Guard       -       A.       B.       C.       D.       E.    Wages of Employees Who Sand the Wood       -       A.       B.       C.       D.       E.    Administrative Assistant in Corporate Office       -       A.       B.       C.       D.       E.    Paper Towels in the Men\'s Room in the Factory       -       A.       B.       C.       D.       E.    Executive Jet       -       A.       B.       C.       D.       E.    Lumber       -       A.       B.       C.       D.       E.    Depreciation on Factory Tools (Straight-Line)

A. Fixed or Variable - Product / Indirect B. Fixed - Period C. Fixed - Product / Indirect D. Variable - Product / Direct E. Variable - Period

Solution

C Factory Rent E Advertising E Packing Supplies for Shipping C Factory Security Guard D Wages of Employees Who Sand the Wood B Administrative Assistant in Corporate Office A Paper Towels in the Men\'s Room in the Factory B Executive Jet D Lumber C Depreciation on Factory Tools (Straight-Line)