ignment Exercise 11-4 Family Furniture Corporation incurred the following costs.

Question

ignment Exercise 11-4 Family Furniture Corporation incurred the following costs. Identify the costs as variable, fixed, or mixed. 1. Wood used in the production of furniture. 2. Fuel used in delivery trucks. 3. Straigh-line depreciation on factory building 4. Screws used in the production of furniture. 5. Sales staff salaries. 6. Sales commissions. 7. Property taxes. 8. Insurance on buildings. 9. Hourly wages of furniture craftsmen. 10. Salaries of factory supervisors 11. Utilities expense. 12. Telephone bill. Show Work is REQUIRED for this question:

Explanation / Answer

1 Wood used in production of furniture—variable 2 Fuel used in delivery trucks– variable 3 Straight-line depreciation on factory buildings– fixed 4 Screws used in production of furniture– variable 5 Sales staff salaries– fixed 6 Sales commissions– variable 7 Property taxes– fixed 8 Insurance on buildings– fixed 9 Hourly wages of furniture craftsman– variable 10 Salaries of factory supervisor– fixed 11 Utilities expense– mixed 12 Telephone bill– mixed 2 High level Low level Maintenance costs 3180 10400 Machine hours 2010 4550 Variable cost per machine hour =(3180-2010)/(10400-4550)= $0.20

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