Homework SourseListed below are costs found in various organizations Requir
Listed below are costs found in various organizations.
Required:
For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product.
Manufacturing (Product) Cost Direct Indirect Cost Item Variable or Fixed Selling Cost Administrative Cost Variable Yes Fixed Yes Yes Fixed Fixed Fixed Fixed Variable I Yes Yes Yes Variable Fixed Yes Yes Yes Yes Ex. Direct labor Executive salaries Factory rent 1. Property taxes, factory. 2. Boxes used for packaging detergent produced by the company. 3. Salespersons\' commissions. 4. Supervisor\'s salary, factory. 5. Depreciation, executive autos. 6. Wages of workers assembling computers. 7. Insurance, finished goods warehouses. 8. Lubricants for production equipment. 9. Advertising costs. 10. Microchips used in producing calculators. 11. Shipping costs on merchandise sold. 12. Magazine subscriptions, factory lunchroom. 13. Thread in a garment factory. 14. Executive life insurance. 15. Ink used in textbook production. 16. Fringe benefits, materials handling workers. 17. Yarn used in sweater production. 18. Wages of receptionist, executive offices. Yes Yes Fixed Variable Fixed Variable Fixed Variable Variable? Fixed Variable Fixed Yes Yes Yes Yes Yes Variable Variable ? Yes Variable FixedSolution
Cost Item
Variable or Fixed
Selling Cost
Administrative cost
Manufacturing (product) cost
Direct
Indirect
Direct Labor
Variable
No
No
Yes
No
Executive salaries
Fixed
No
Yes
No
No
factory rent
Fixed
No
No
No
Yes
Property taxes ,Factory
Fixed
No
No
No
Yes
Boxes used for packaging detergent produced by the company
Variable
Yes
No
No
No
salesperson\'s Commission
Variable
Yes
No
No
No
Supervisors salary, Factory
Fixed
No
No
No
Yes
Depreciation , executive autos
Fixed
No
Yes
No
No
Wages of workers assembling computers
Variable
No
No
Yes
No
Insurance ,Finished goods warehouse
Fixed
No
Yes
No
No
Lubricant for production equipment
Variable
No
No
No
Yes
Advertising Cost
Fixed
Yes
No
No
No
Microchips used in producing Calculator
Variable
No
No
Yes
No
Shipping cost on merchandise sold
Variable
Yes
No
No
No
Magazine subscription ,Factory lunchroom
Fixed
No
Yes
No
No
Thread in a garment factory
Variable
No
No
Yes
No
Executive life insurance
Fixed
No
Yes
No
No
Ink used in textbook production
Variable
No
No
Yes
No
Fringe benefits, material handling workers
Fixed
No
No
No
Yes
Yam used in sweater production
Variable
No
No
Yes
No
Wages of Receptionist, Executive officer
Fixed
No
Yes
No
No
| Cost Item | Variable or Fixed | Selling Cost | Administrative cost | Manufacturing (product) cost | |
| Direct | Indirect | ||||
| Direct Labor | Variable | No | No | Yes | No |
| Executive salaries | Fixed | No | Yes | No | No |
| factory rent | Fixed | No | No | No | Yes |
| Property taxes ,Factory | Fixed | No | No | No | Yes |
| Boxes used for packaging detergent produced by the company | Variable | Yes | No | No | No |
| salesperson\'s Commission | Variable | Yes | No | No | No |
| Supervisors salary, Factory | Fixed | No | No | No | Yes |
| Depreciation , executive autos | Fixed | No | Yes | No | No |
| Wages of workers assembling computers | Variable | No | No | Yes | No |
| Insurance ,Finished goods warehouse | Fixed | No | Yes | No | No |
| Lubricant for production equipment | Variable | No | No | No | Yes |
| Advertising Cost | Fixed | Yes | No | No | No |
| Microchips used in producing Calculator | Variable | No | No | Yes | No |
| Shipping cost on merchandise sold | Variable | Yes | No | No | No |
| Magazine subscription ,Factory lunchroom | Fixed | No | Yes | No | No |
| Thread in a garment factory | Variable | No | No | Yes | No |
| Executive life insurance | Fixed | No | Yes | No | No |
| Ink used in textbook production | Variable | No | No | Yes | No |
| Fringe benefits, material handling workers | Fixed | No | No | No | Yes |
| Yam used in sweater production | Variable | No | No | Yes | No |
| Wages of Receptionist, Executive officer | Fixed | No | Yes | No | No |
