Chapter 2, Problem 4EA

Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs.

1. Lumber used to construct decks ($12.00 per square foot)
2. Carpenter labor used to construct decks ($10 per hour)
3. Construction supervisor salary ($45,000 per year)
4. Depreciation on tools and equipment ($6,000 per year)
5. Selling and administrative expenses ($35,000 per year)
6. Rent on corporate office space ($34,000 per year)
7. Nails, glue, and other materials required to construct deck (varies per job)