Question

Collaborat 125% Zoom Add Page Insert Table Chart Text Shape Media Comment 1. Property taxes, factory 2. Boxes used for packing detergent produced by the company 3. Salespersons' commissions 4. Supervisors' salary, factory 5. Depreciation, executive autos 6. Wages of workers assembling computers 7. Insurance, finished goods warehouse 8. Lubricants for production equipment 9. Advertising costs 10. Microchips used in producing calculators 11. Shipping costs on merchandise sold 12. Magazine subscription, 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 officers 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 is 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. Prepare an answer sheet with column headings as shown below. I ctu 02: Cost Item Selling cost Variable or Fixed Administrative Manufacturing (Product) cost cost Direct Indirect nts Gtv 20 ....

Answer 1

Manufacturing (Product) cost Cost item Selling Cost Administrative Cost Direct Indirect Variable or Fixed F V х X V х 1 2 3 4 5 6 F х х F V X 7 F х 8 V х 9 F х 10 V х 11 V х 12 F х 13 V х Indirect material cost 14 F х 15 V х 16 F х 17 V V 18 F х