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. Enter the dollar amount of each cost item under the dp tems in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the nu units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it be classified as either direct or indirect as shown.) Selling and Administrative Cost Cost Behaviour Product Cost Cost Item Variable Fixed Direct Indirect Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions 2$ 126,500 2$ 126,500 51,700 51,700 Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory Total costs

. Enter the dollar amount of each cost item under the dp tems in the preceding list. Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the nu units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it be classified as either direct or indirect as shown.) Selling and Administrative Cost Cost Behaviour Product Cost Cost Item Variable Fixed Direct Indirect Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions 2$ 126,500 2$ 126,500 51,700 51,700 Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory Total costs

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The company is currently operating at 80% of its full capacity if 3700 sets per quarter

Required: 1. Enter the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the number of units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect as shown.) Selling and Administrative Cost Cost Behaviour Product Cost Cost Item Variable Fixed Direct Indirect Factory labour, direct Advertising 24 126,500 24 126,500 51,700 51,700 Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory Total costs *To units of product.
Transcribed Image Text:Required: 1. Enter the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list Note that each cost item is classified in two ways: first, as variable or fixed, with respect to the number of units produced and sold, and, second, as a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect as shown.) Selling and Administrative Cost Cost Behaviour Product Cost Cost Item Variable Fixed Direct Indirect Factory labour, direct Advertising 24 126,500 24 126,500 51,700 51,700 Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory Total costs *To units of product.
The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and currently operating at 80% of its full capacity of 3,700 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions $126,500 51,700 41,700 5,200 88,500 4, 200 5,700 13,700 Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory 7,700 11,700 4,700 68,500 102,500 21,700
Transcribed Image Text:The Mahela Company specializes in producing sets of wooden patio furniture consisting of a table and currently operating at 80% of its full capacity of 3,700 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions $126,500 51,700 41,700 5,200 88,500 4, 200 5,700 13,700 Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory 7,700 11,700 4,700 68,500 102,500 21,700
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