Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. For purposes of classifying costs as fixed or variable, assess cost behavior relative to the output quantity of finished T-shirts. (If your answer is "No" leave the cells blank.) Cost items 1. Cost of fabric used in T-shirt 2. Wages of shirt makers 3. Cost of new sign in front of retail T-shirt shop 4. Wages of the employee who repair the firm’s sewing machines 5. Cost of electricity used in the sewing department 6. Wages of T-shirts designers and painters 7. Wages of sales personnel 8. Depreciation on sewing machines 9. Rent on the building. Part of the building’s first floor is used to make and paint T-shirts. Part of it is used for the retail sales shop. The second floor is used for administrative offices and storage of raw material and finished goods- 10. Cost of daily advertisements in local media 11. Wages of designers who experiment with new fabrics, paints and T-shirt designs 12. Cost of hiring a pilot to fly along the beach pulling a banner advertising the shop 13. Salary of the owner’s secretary 14. Cost of repairing the gas furnace 15. Cost of insurance for the production employee Could you please tell the answer in the table format for the above 15 cost items Table format: a) variable or fixed b) Period or Product c) Administrative d) Selling e) Manufacturing f) Research and Development g) Direct material, Direst labor or manufacturing overhead
Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. For purposes of classifying costs as fixed or variable, assess cost behavior relative to the output quantity of finished T-shirts. (If your answer is "No" leave the cells blank.)
Cost items
1. Cost of fabric used in T-shirt
2. Wages of shirt makers
3. Cost of new sign in front of retail T-shirt shop
4. Wages of the employee who repair the firm’s sewing machines
5. Cost of electricity used in the sewing department
6. Wages of T-shirts designers and painters
7. Wages of sales personnel
8.
9. Rent on the building. Part of the building’s first floor is used to make and paint T-shirts. Part of it is used for the retail sales shop. The second floor is used for administrative offices and storage of raw material and finished goods-
10. Cost of daily advertisements in local media
11. Wages of designers who experiment with new fabrics, paints and T-shirt designs
12. Cost of hiring a pilot to fly along the beach pulling a banner advertising the shop
13. Salary of the owner’s secretary
14. Cost of repairing the gas furnace
15. Cost of insurance for the production employee
Could you please tell the answer in the table format for the above 15 cost items
Table format: a) variable or fixed b) Period or Product c) Administrative d) Selling e) Manufacturing f) Research and Development g) Direct material, Direst labor or manufacturing overhead
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