The Red Mill Inn incurs costs in three areas of its business operations. These three areas are the kitchen, lodging, and the gift shop. Preparing food in the kitchen creates costs similar to a manufacturing company - materials, labor, and overhead. There are two answers per item.Categorize the following costs first by FIXED or VARIABLE Then by: DIRECT MATERIALS, DIRECT LABOR, OVERHEAD, OR PERIOD COST (EXPENSE) 1. Total cost to clean rooms this month2. Wages of the Inn's maintenance man3. Dishwasher detergent4. Supplies used in the business office5. Cash register tape used in the gift shop6. Depreciation of the office computer7. Electricity used in the kitchen8. Depreciation of the Inn9. Cost of sugar used in the kitchen10. Wages of the two cooks in the kitchen

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
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The Red Mill Inn incurs costs in three areas of its business operations. These three areas are the kitchen, lodging, 
and the gift shop. Preparing food in the kitchen creates costs similar to a manufacturing company - materials, labor, and overhead.

There are two answers per item.
Categorize the following costs first by FIXED or VARIABLE

Then by: DIRECT MATERIALS, DIRECT LABOR, OVERHEAD, OR PERIOD COST (EXPENSE)


1. Total cost to clean rooms this month
2. Wages of the Inn's maintenance man
3. Dishwasher detergent
4. Supplies used in the business office
5. Cash register tape used in the gift shop
6. Depreciation of the office computer
7. Electricity used in the kitchen
8. Depreciation of the Inn
9. Cost of sugar used in the kitchen
10. Wages of the two cooks in the kitchen

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