Indicate whether each cost is: A. Fixed or Variable b. Selling, General/Administrative, or Manufacturing
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Indicate whether each cost is:
A. Fixed or Variable
b. Selling, General/Administrative, or Manufacturing
Step by step
Solved in 3 steps
- Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. a. Wages of administrative staff b. Shipping costs on merchandise sold C. Wages of workers assembling computers d. Cost of lease on factory equipment e. Insurance on factory f. Direct materials used in production of lamps g. Supervisor salary, factory h. Advertising costs_ i. Property taxes, factory j. Health insurance cost for company executives k. Rent on factoryListed below are costs found in various organizations.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. Billing costs.15. Executive life insurance.16. Ink used in textbook production.17. Fringe benefits, assembly-line workers.18. Yarn used in sweater production.19. Wages of receptionist, executive offices.Required:Prepare an answer sheet with column headings as shown below. For each cost item, indicate whetherit would be variable or fixed with respect to the number of units produced and sold; and then whetherit would be a selling cost, an administrative…Listed here are product costs for production of soccer balls. Classify each cost as either direct or indirect. Product Cost 1. Coolants for machinery 2. Wages of product assembly workers 3. Annual flat fee paid for factory security 4. Taxes on factory 5. Machinery depreciation (straight-line) 6. Rubber bladder interior for balls 7. Factory building rent 8. Wages of factory machine operators 9. Wages of factory maintenance workers 10. Factory supervisor salary Direct or Indirect
- Following are selected costs of a company that manufactures computer chips. Classify each as either a product cost or a period cost. Then classify each of the product costs as direct material, direct labor, or overhead. 1. Plastic boards used to mount chips 2. Advertising costs 3. Factory maintenance workers’ salaries 4. Real estate taxes paid on the sales office 5. Real estate taxes paid on the factory 6. Factory supervisor salary 7. Depreciation on factory equipment 8. Assembly worker hourly pay to make chipsThe following is a list of costs incurred by several manufacturing companies: a. Bonus for vice president of marketing b. Costs of operating a research laboratory c. Cost of unprocessed milk for a dairy d. Depreciation of factory equipment e. Entertainment expenses for sale representatives f. Factory supplies g. First-aid nurse for factory workersh. Health insurance premiums paid for factory workers i. Hourly wages of warehouse laboresrs j. Lumber used by furniture manufacturer k. Maintenance costs for factory equipment l. Microprocessors for a microcomputer manufacturer m. Packing supplies for products sold, which are insignificant to the total cost of the product n. Paper used by commercial printer o. Paper used in processing various managerial reports p. Protective glasses for factory machine operators q. Salaries of quality control personnel r. Sales commissions s. Seed for gain farmer t. Television advertisment u. Prebuilt transmissions for an automobile manufacturer v. Wages of a…Little Things manufactures toys. For each item listed, identify whether it is a product cost, a period cost, or not an expense. A. internet provider services B. material expense C. raw materials inventory D. production equipment rental E. showroom rental F. factory employee salary G. Human Resource Director salary
- The following is a list of costs incurred by several businesses:a. Salary of quality control supervisorb. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product.c. Factory operating suppliesd. Depreciation of factory equipmente. Hourly wages of warehouse laborersf. Wages of company controller’s secretaryg. Maintenance and repair costs for factory equipmenth. Paper used by commercial printeri. Entertainment expenses for sales representativesj. Protective glasses for factory machine operatorsk. Sales commissionsl. Cost of hogs for meat processorm. Cost of telephone operators for a toll-free hotline to help customers operate productsn. Hard drives for a microcomputer manufacturero. Lumber used by furniture manufacturerp. Wages of a machine operator on the production lineq. First-aid supplies for factory workersr. Tires for an automobile manufacturers. Paper used by Computer Department in processing various managerial reportst. Seed for…For apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost: a. Advertising expenses b. Chief financial officers salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines j. Repairs and maintenance costs for sewing machines k. Research and development costs l. Sales commissions m. Salaries of distribution center personnel n. Salaries of production quality control supervisors o. Travel costs of media relations employees p. Utility costs for office building q. Wages of sewing machine operatorsListed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. Wages of administrative staff Shipping costs on merchandise sold Wages of workers assembling computers Cost of lease on factory equipment Insurance on factory Direct materials used in production of lamps Supervisor salary, factory Advertising costs Property taxes, factory Health insurance cost for company executives Rent on factory
- Abuah Goods manufactures clothing. For each item listed, Identify whether It is a product cost, a period cost, or not an expense. pins to keep materials together while garment Is being manufactured real estate taxes on store advertising expense product inspector wages shirts for sale Chief Financial Officer salary cost of goods soldA car manufacturer incurs the following costs. Classify each cost as either a product or period cost. If a product cost, classify it as direct materials, direct labor, or factory overhead. If a period cost, classify it as a selling expense or a general and administrative expense. Costs Cost Classification 1. Factory electricity 2. Advertising 3. Depreciation on factory machine 4. Batteries for electric cars 5. Office supplies used 6. Wages to assembly workers 7. Salesperson commissions 8. Steel for cars 9. Depreciation on office equipment 10. Leather for car seatsClassifying costsThe following is a list of costs incurred by several businesses:a. Salary of quality control supervisor b. Packing supplies for products sold. These supplies are a verysmall portion of the total cost of the product.c. Factory operating suppliesd. Depreciation of factory equipmente. Hourly wages of warehouse laborers f. Wages of company controller's secretaryg. Maintenance and repair costs for factory equipmenth. Paper used by commercial printeri. Entertainment expenses for sales representativesj. Protective glasses for factory machine operators k. Sales commissionsl. Cost of hogs for meat processorm. Cost of telephone operators for a toll-free hotline to helpcustomers operate productsn. Hard drives for a microcomputer manufacturer o. Lumber used by furniture manufacturerp. Wages of a machine operator on the production lineq. First-aid supplies for factory workersr. Tires for an automobile manufacturers. Paper used by Computer Department in processing variousmanagerial…
