Listed below are costs found in various organizations. Required: For each cost item, Indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an Indirect cost with respect to units of product. Cost Item Example: Direct labor Example: Executive salaries Example: Factory rent 1. Property taxes, factory. 2. Boxes used for packaging detergent produced by the company. 3. Salespersons' commissions. 4. Supervisor's salary, factory. 5. Depreciation, executive autos. 6. Wages of workers assembling computers. 7. Insurance, finished goods warehouses. 8. Lubricants for production equipment. 9. Advertising costs. 10. Microchips used in producing calculators. 11. Shipping costs on merchandise sold. 12. Magazine subscriptions, factory lunchroom. 13. Thread in a garment factory. 14. Executive life insurance. 15. Ink used in textbook production. 16. Fringe benefits, materials handling workers. 17. Yarn used in sweater production. 18. Wages of receptionist, executive offices. Variable or Fixed Selling Cost Administrative Cost Manufacturing Manufacturi (Product) Cost (Product) C Direct InDirect Variable Yes Fixed Fixed Yes Yes

Q: Which of the following would be included in the cost of a product manufactured according to variable…

A: Variable costing: Variable costing is a method that considers only the variable cost and ignores all…

Q: Which one of the following is a fixed cost? a. Raw material costs b. Salary with commission c.…

A: A fixed cost is one that does not adjust in the short term, even though a company's sales volume or…

Q: Identify the following as fixed costs (F), variable costs (V), or mixed costs(M). direct labor…

A: A cost that changes, in total dollar amount, with the change in the level of activity is called…

Q: PART A Classify each cost below as being either variable (VC) or fixed (FC) with respect to the…

A: The costs that changes with the level of production are said to be variable costs and the costs that…

Q: How do I find the "actual variable costs" in a list of transactions? It would be direct labor,…

A: Cost is the expense incurred in the acquisition and conversion of raw materials to finished goods.…

Q: Which of the following costs could contain both variable and fixed cost elements with respect to the…

A: Variable cost means cost which changes with the change in activity whereas the Variable cost per…

Q: Classify each of the following as a variable, fixed cost or mixed cost. a. Direct labour b.…

A: Variable cost is such type of cost which changes with the changes in units produced. Fixed cost…

Q: Required: For each cost item, indicate whether it would be variable or fixed with respect to the…

A: Direct costs are the expenses a business incurs directly to make a product or service.

Q: Under direct/marginal costing, a unit of product includes which costs? direct material, direct…

A: Marginal costing is the method of determining the operating income. It separately shows the variable…

Q: Question: In a manufacturing setting, direct labor costs are considered: a) Variable costs b) Fixed…

A: Variable costs - Fixed costs - Mixed costs- Overhead costs

Q: Please explain the statement below (T/F) thoroughly with examples illustrating the answer.  "To…

A: "Activity-based costing is one of the costing methods that is structured and designed in such a way…

Q: Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and…

A: The indirect costs include the factory overhead costs incurred into the production process.  The…

Q: When factory overheads are added to prime cost then the result will be. a. Cost of material consumed…

A: Prime cost = Direct material + Direct labor Conversion costs = Direct labor + factory overheads Cost…

Q: Identify whether each of the following costs should be classified as product costs or period costs.…

A: Product Costs: Product Costs means the direct costs incurrend for production of a product. Product…

Q: Kindly answer all questions: 1.) Cost behavior is considered linear whenever a straight line is a…

A: Introduction:- Cost behavior denotes how a cost will change in total when there is a change in…

Q: ABC Firm reported the following for the final three months of 2020: October November December Units…

A: The costs incurred in a business can be categorised differently on the basis of mixed cost, variable…

Q: Which of the following costs at a manufacturing company would be treated as a product cost under…

A: The product costs are the costs which are directly related to the production. The variable costing…

Q: Classify the following manufacturing costs of Business Solutions as either (a) variable (V) or fixed…

A: Variable cost is the cost which changes with the change in production. With every increase in…

Q: Direct labour cost is an element of_________ a. All of the given options b. Prime cost c. Conversion…

A: A direct labor cost is referred to as the wages that are incurred directly to produce the goods or…

Q: A Product's cost is the sum of its direct-material cost, its direct-labor cost, and its overhead…

A: A Product's cost is the sum of its direct-material cost, its direct-labor cost, and its overhead…

Q: Which of the following correctly describes the term cost driver? a.The primary factor which is…

A: Cost driver is the driver cause of which the cost is incurred. On the basis of this we find the…

Q: Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead…

A: The predetermined overhead rate is a calculated ratio used in cost accounting to allocate indirect…

Q: With respect to cost classifications for manufacturers:a. What is the total manufacturing cost?b.…

A: For a manufacturer,  Total manufacturing cost = Direct Material Cost + Direct Labour Cost + Variable…

Q: Which one is a controllable cost? Select one: O a. Office salary Ob. Rent Factory O c Office Rent O…

A: Controllable costs are those costs which can be controlled by the business.

Q: Identify each of the following costs as either a product cost (PROD) or a period cost (PER). Office…

A: Definition: Office manager salary

Q: Which of the following correctly describes the term cost driver? a. The inflation rate which causes…

A: Cost driver are the compotents that are directly related to the product that determine the cost of…

Q: Which of the following is a possible cost driver that may be used in calculating a company's…

A: An allocation rate which is determined by an entity in order to estimate the overhead of the entity…

Q: Which one is a controllable cost? Select one: O a. Office salary O b. Cost of Raw material O c. Rent…

A:

Q: ne company ood patio Turniture consisting of a and The company has enough customer demand to justify…

A: Variable cost varies with production, The cost increases with increase in production and decreases…

Q: 1. Wages of assembly line workers 2. President's salary 3. Plant utilities 4. Sales force…

A: Variable cost:Variable costs are expenses that vary in direct proportion to the level of production…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.