QUESTION 1 1. (a) Identfly the costs below as either variable, fixed, or mixed,

Question

QUESTION 1 1. (a) Identfly the costs below as either variable, fixed, or mixed, b) Also,thoroughly an d clearly support your identify of each cost. a. Cell phone bill of the sales force b. Paint used to paint the tractors on the assembly line c Activity method depreciation on painting equipment d. Utility expense on factory 2. If the highest month of Utility costs is February equaling $9 240 when the total electricity used was 16,000 kilawatts (KWHs) and the lowest month of Utility costs is May equaling $5,280 where electricity use is 7,000 KWHs, estimate the utility cost for June if the utility cost is 11,500KWHs Show all computations 3. Carmen is asking for your help in determine her home-based, custom baking company She provided the following information Click Save and Submit to save and submit. Click Save All Answers to save all anstwers Save All Answers

Explanation / Answer

Answer to question No.1

a. Cell phone bills of sales force:

It is a fixed cost as it will incur every month irrespective of number of units produced or number of hours worked.

b. Paint used to paint the tractors on the assembly line:

It is a fixed cost as the same amount of cost will incur every time the tractors on assembly line will be painted.

c. Activity method depreciation on painting equipment.

Since under activity method depreciation, depreciation expense is calculated on basis od asset's activity such as number of units produced or number of hours asset is used, it is a Variable cost.

d. Utility expense on factory:

Utilities expense is the cost related to Electricity, Heat (gas), Sewer, Water. It is sometimes also associated with expenditures for ongoing telephone and internet service.

therefore, This expense is a mixed cost, since there is usually a fixed fee component plus a variable charge based on actual usage.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.