Problem 2-45Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on the Cost Classificationspremises. Several costs incurred by the company are listed below. For each cost, indicate which of the fol-lowing classifications best describe the cost. More than one classification may apply to the same cost item.(LO 5, 8, 9)Cost Classificationsa. Variableb. Fixedc. Periodd. Producte. Administrativef. Selling2Chapter 2 Basic Cost Management Concepts and Accounting for Mass Customization Operationsg. Manufacturingh. Research and developmenti. Direct materialj. Direct labork. Manufacturing overheadCost Items1. Cost of fabric used in T-shirts.2. Wages of shirtmakers.3. Cost of new sign in front of retail T-shirt shop.4. Wages of the employce who repairs the firm's sewing machines.5. Cost of electricity used in the sewing department.6. Wages of T-shirt 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 itis used for the retail sales shop. The second floor is used for administrative offices and storage ofraw 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 employees.

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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 fol- lowing classifications best describe the cost. More than one classification may apply to the same cost item.

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 fol- lowing classifications best describe the cost. More than one classification may apply to the same cost item.

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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