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 either variable costs, fixed costs, or mixed costs. 1.  Oil used in manufacturing equipment   2.  Plastic   3.  Property taxes, $165,000 per year on factory building and equipment   4.  Salary of plant manager   5.  Cost of labor for hourly workers   6.  Packaging   7.  Factory cleaning costs, $6,000 per month   8.  Metal   9.  Rent on warehouse, $10,000 per month plus $25 per square foot of storage used   10.  Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000   11.  Straight-line depreciation on the production equipment   12.  Hourly wages of machine operators   13.  Electricity costs, $0.20 per kilowatt-hour   14.  Computer chip (purchased from a vendor)   15.  Pension cost, $1.00 per employee hour on the job

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 either variable costs, fixed costs, or mixed costs.

1.  Oil used in manufacturing equipment  
2.  Plastic  
3.  Property taxes, $165,000 per year on factory building and equipment  
4.  Salary of plant manager  
5.  Cost of labor for hourly workers  
6.  Packaging  
7.  Factory cleaning costs, $6,000 per month  
8.  Metal  
9.  Rent on warehouse, $10,000 per month plus $25 per square foot of storage used  
10.  Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000  
11.  Straight-line depreciation on the production equipment  
12.  Hourly wages of machine operators  
13.  Electricity costs, $0.20 per kilowatt-hour  
14.  Computer chip (purchased from a vendor)  
15.  Pension cost, $1.00 per employee hour on the job  
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