Question

Mark an X in each row. Each row has a maximum of two Xs.

Problem 2-15 (30 minutes) Period (Selling and Name of the Cost Variable Fixed Cost Cost Admin.) Cost Product Cost Direct Direct Mfg. Materials Labour Overhead Direct materials cost, $50 per unit Supervisor's salary, $3,000 per month Direct labour cost, $22 per unit Rental cost of warehouse, $1,500 per month Rental cost of equipment, $2,200 per month Depreciation of the building, $7,000 per year Advertising cost, $28,000 per year Shipping cost, $7 per unit Electrical costs, S4 per unit

Answer 1

Name of the cost	Variable cost	Fixed cost	Product cost	Period cost
			Direct materials	Direct labor	Manufacturing overheads
Direct materials cost, $50 per unit	X		X
Supervisor's salary, $3,000 per month		X				X
Direct labor cost, $22 per unit	X			X
Rental cost of warehouse, $1,500 per month		X				X
Rental cost of equipment, $2,200 per month		X			X
Deprecition of the building, $7,000 per year		X				X
Advertising cost, $28,000 per year		X				X
Shipping cost, $7 per unit	X					X
Electrical cost, $4 per unit	X				X

Please ask if you have any doubt. Thanks