Variable, fixed, and mixed costs
Philadelphia Acoustics builds innovative speakers for music and home theater systems. Consider the following costs:
1.Units of production depreciation on routers used to cut wood enclosures.
2.Wood for speaker enclosures.
3.Patents on crossover relays.
4.Total compensation to salesperson, who receives a salary plus a commission based on meeting sales goals.
5.Crossover relays.
6.Straight line depreciation on manufacturing plant.
7.Grill cloth.
8.Cell phone costs of salesperson (plan includes 1,200 minutes; overseas calls are charged at an average of $0.15 per minute).
9.Glue.
10.Quality inspector’s salary.
Requirement
1.Identify the costs as variable (V), fixed (F), or mixed (M).