The following information relates to the costs of Carox Limited for November 2021. N$'000 Salaries Factory workers (1) 61 000 Factory management (2) 55 000 Accounting 10 000 Directors 40 000 Depreciation (3) Factory equipment 10 000 Office equipment 2 200 Buildings 3 500 Purchases from creditors Raw material 95 000 Water and electricity (4) Factory 22 000 Storeroom 3 000 Office 4 000 Other Cleaners (office) (fixed rate as per contract) 1 800 Entertainment (amount is spent every year) 600 External audit fees as per contract 1 000 Additional Information: Factory workers are paid based on the hours worked. Factory management is employed as permanent employees who are paid a fixed salary irrespective of the hours worked. All the assets are depreciated on the straight-line method over the useful life of the asset, except delivery vehicles whose depreciation is based on the number of kilometers travelled. The number of kilometers travelled is roughly proportionate to the production volume. There are three buildings on the premises - the factory building, the storeroom where the raw materials are store and the administration building. The water and electricity of the storeroom and the office is the same from one month to the next irrespective of any change in the number of units sold or produced. N$3 000 of the water and electricity of the factory is not influenced by the number of units REQUIRED: 1.1 For each cost above, indicate whether it is a direct, indirect, or period cost as well as whether it is fixed or variable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The following information relates to the costs of Carox Limited for November 2021.

	N$'000
Salaries
Factory workers (1)	61 000
Factory management (2)	55 000
Accounting	10 000
Directors	40 000
Depreciation (3)
Factory equipment	10 000
Office equipment	2 200
Buildings	3 500
Purchases from creditors
Raw material	95 000

Water and electricity (4)
Factory	22 000
Storeroom	3 000
Office	4 000
Other
Cleaners (office) (fixed rate as per contract)	1 800
Entertainment (amount is spent every year)	600
External audit fees as per contract	1 000

Additional Information:

Factory workers are paid based on the hours worked.

Factory management is employed as permanent employees who are paid a fixed salary irrespective of the hours worked.
All the assets are depreciated on the straight-line method over the useful life of the asset, except delivery vehicles whose depreciation is based on the number of kilometers travelled. The number of kilometers travelled is roughly proportionate to the production volume. There are three buildings on the premises - the factory building, the storeroom where the raw materials are store and the administration building.
The water and electricity of the storeroom and the office is the same from one month to the next irrespective of any change in the number of units sold or produced. N$3 000 of the water and electricity of the factory is not influenced by the number of units

REQUIRED:

1.1

For each cost above, indicate whether it is a direct, indirect, or period cost as well as whether it is fixed or variable.

r(Please present your answers in a table format and mark the appropriate column by way of a (X)].

Expert Solution

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Discontinuing operations for a product or a service line

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions