Problem 1 Classify the following as to Fixed, Variable or Mixed Cost 1. Factory Rent 2. Wages of workers paid based on units produced 3. Cost Accountant Salary 4. Depreciation based on output 5. Salary of Factory supervisor 6. Basic Salary plus sales commission of salesman 7. Paper in manufacturing of books 8. Factory Insurance 9. Monthly Depreciation of Building 10. Bottle used in packaging

Problem 1 Classify the following as to Fixed, Variable or Mixed Cost 1. Factory Rent 2. Wages of workers paid based on units produced 3. Cost Accountant Salary 4. Depreciation based on output 5. Salary of Factory supervisor 6. Basic Salary plus sales commission of salesman 7. Paper in manufacturing of books 8. Factory Insurance 9. Monthly Depreciation of Building 10. Bottle used in packaging

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4PA: Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable...

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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. 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
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Instruction: Read each problem carefully ana proviue h n Prob Problem 1. Classify each of the following costs of Bug Company in two ways: (a) as variable (V) fixed costs (F); (b) as inventoriable costs (I) or period costs (P): Example: Direct labor 1. Salary of company 2. Fire insurance on direct materials controller 3. Property taxes on finished goods held for sale 4. Direct materials used tico of 5. Factory.renty p 6. Sales Commissions R 7. Overtime premium of machine operators 8. Straight-line depreciation of Factory equipment 9. Straight-line depreciation of trucks used for delivery R. of sales to customers 10. Salary of factory supervisor 16
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