accounting question 453017
Aug 29, 2021 | Uncategorized
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Listed below are costs found in various organizations. 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 would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it would typically be treated as a direct cost or an indirect cost with respect to units of product. |
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Manufacturing (Product) Cost |
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Cost Item |
Variable or Fixed |
Selling Cost |
Administrative Cost |
Direct |
Indirect |
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Direct labor |
Variable |
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Yes |
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Executive salaries |
Fixed |
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Yes |
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Factory rent |
Fixed |
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Yes |
| 1. |
Depreciation, executive jet. |
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| 2. |
Costs of shipping finished goods to customers. |
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| 3. |
Wood used in manufacturing furniture. |
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| 4. |
Sales manager’s salary. |
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| 5. |
Electricity used in manufacturing furniture. |
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| 6. |
Secretary to the company president. |
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| 7. |
Aerosol attachment placed on a spray can produced by the company. |
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| 8. |
Billing costs. |
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| 9. |
Packing supplies for shipping products overseas. |
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| 10. |
Sand used in manufacturing concrete. |
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| 11. |
Supervisor’s salary, factory. |
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| 12. |
Executive life insurance. |
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| 13. |
Sales commissions. |
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| 14. |
Fringe benefits, assembly line workers. |
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| 15. |
Advertising costs. |
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| 16. |
Property taxes on finished goods warehouses. |
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| 17. |
Lubricants for production equipment. |
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