Business, 25.01.2021 20:40 viicborella
For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold, and then direct cost or an indirect cost with respect to units of product.
Manufacturing (Product) Cost
Variable or FixedSelling CostAdministrative CostDirectIndirect
Ex. Direct laborVariable Yes
Executive SalariesFixed Yes
Factory rentFixed Yes
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
Answers: 1
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For each cost item, indicate whether it would be variable or fixed with respect to the number of uni...
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