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Problem 1-23 Cost Classification (LO1-1, LO1-3, LO1-4] Listed below are costs found in various organizations. Required: For e12. Magazine subscriptions, factory lunchroom. 13. Thread in a garment factory. 14. Executive life insurance. 15. Ink used in

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Answer #1
Manufacturing Cost
Cost Items Variable or fixed Selling Cost Administrative cost Direct Indirect
12 Magazine subscriptions, factory lunchroom Fixed Yes
13 Thread in a garment factory Variable Yes
14 Executive life insurance Fixed Yes
15 Ink used in textbook production Variable Yes
16 Fringe benefits, materials handling workers Variable Yes
17 Yarn used in sweater production Variable Yes
18 Wages of receptionist, executive offices Fixed Yes
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