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 variable, fixed, or mixed.1. Cost of labor for hourly workersFixed2. Factory cleaning costs, $6,000 per monthMixed3. Hourly wages of machine operatorsVariable4. Computer chip (purchased from a vendor)5. Electricity costs, $0.20 per kilowatt-hour6. Metal7. Salary of plant manager8. Property taxes, $165,000 per year on factory building and equipment9. Plastic10. Oil used in manufacturing equipment11. Rent on warehouse, $10,000 per month plus $25 per square foot of storage used12. Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over$1,200,00013. Straight-line depreciation on the production equipment14. Pension cost, $1.00 per employee hour on the job15. Packaging

Introduction:- Costs are classified into three types as follows:- Fixed costs:- Theses costs are…

Classify Costs Following 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 variable, fixed, or mixed. 1. Cost of labor for hourly workers Fixed 2. Factory cleaning costs, $6,000 per month Mixed 3. Hourly wages of machine operators Variable

Classify Costs Following 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 variable, fixed, or mixed. 1. Cost of labor for hourly workers Fixed 2. Factory cleaning costs, $6,000 per month Mixed 3. Hourly wages of machine operators Variable

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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Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,091 14,781 April 2,676 9,929 May 2,812 11,845 June 3,520 17,889 a.$0.49 b.$0.53 c.$0.11 d.$1.17
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