Classify CostsFollowing is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as either variable costs, fixed costs, or mixed costs.1. Oil used in manufacturing equipment2. Plastic3. Property taxes, $165,000 per year on factory building and equipment4. Salary of plant manager5. Cost of labor for hourly workers6. Packaging7. Factory cleaning costs, $6,000 per month8. Metal9. Rent on warehouse, $10,000 per month plus $25 per square foot of storage used10. Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,00011. Straight-line depreciation on the production equipment12. Hourly wages of machine operators13. Electricity costs, $0.20 per kilowatt-hour14. Computer chip (purchased from a vendor)15. Pension cost, $1.00 per employee hour on the job

Fixed cost: Cost that is a fixed per period is called Fixed cost. Fixed cost remains constant for…

ng is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as eith used in manufacturing equipment tic berty taxes, $165,000 per year on factory building and equipment ary of plant manager t of labor for hourly workers kaging cory cleaning costs, $6,000 per month al t on warehouse, $10,000 per month plus $25 per square foot of storage used operty insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000

ng is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as eith used in manufacturing equipment tic berty taxes, $165,000 per year on factory building and equipment ary of plant manager t of labor for hourly workers kaging cory cleaning costs, $6,000 per month al t on warehouse, $10,000 per month plus $25 per square foot of storage used operty insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000

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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