Question

Listed here are product costs for the production of soccer balls. Identify each cost (a) as either fixed or variable and (b) as either direct or indirect by selecting the appropriate dropdowns. Variable or Fixed Direct or Indirect Product Cost 1. Coolants for machinery 2. Benefits for assembly workers 3. Annual flat fee paid for factory security 4. Machinery depreciation (straight-line) 5. Rubber core for soccer balls 6. Insurance on factory 7 Factory rent

Answer 1

Correct Answer:

	Variable / Fixed	Direct / Indirect
Coolant for machinery	fixed	indirect
Benefits for assembly workers	variable	indirect
Annual flat fee paid for factory security	fixed	indirect
Machinery depreciation (straight line)	fixed	indirect
Rubber core for soccer balls	variable	Direct
Insurance on factory	fixed	indirect
Factory rent	fixed	indirect

End of Answer.

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