For each of the following costs incurred in a manufacturing firm, indicate wheth
ID: 2332382 • Letter: F
Question
For each of the following costs incurred in a manufacturing firm, indicate whether the costs are most likely fixed (F) or variable whether they are most likely period costs (P) or product costs (M) under full absorption costing: Fixed (F) Variable (V) Period (P) Product (M) Cost Item a. Depreciation on the building for administrative staff offices. b. Cafeteria costs for the factory c. Overtime pay for assembly workers. d. Transportation-in costs on materials purchased e. Salaries of top executives in the company. f. Sales commissions for sales personnel g. Assembly line workers' wages h. Controller's office rental. i. Administrative support for sales supervisors j Energy to run machines producing units of output in the factory. Reterences eRook & ResourcesExplanation / Answer
A
Depreciation on building for administrative staff offices
Fixed
Period
B
cafeteria cost for the factory
Fixed
product
C
overtime pay for assembly workers
variable
product
D
Transportation in cost on material purchase
variable
product
E
salaries of top executives in the company
Fixed
Period
F
sales commission for sales personnel
variable
product
G
Assembly line workers salary
variable
product
H
Controller office rental
Fixed
Period
I
Administrative support for sales supervisors
Fixed
Period
J
Energy to run machines
variable
product
A
Depreciation on building for administrative staff offices
Fixed
Period
B
cafeteria cost for the factory
Fixed
product
C
overtime pay for assembly workers
variable
product
D
Transportation in cost on material purchase
variable
product
E
salaries of top executives in the company
Fixed
Period
F
sales commission for sales personnel
variable
product
G
Assembly line workers salary
variable
product
H
Controller office rental
Fixed
Period
I
Administrative support for sales supervisors
Fixed
Period
J
Energy to run machines
variable
product
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