a. Wages of factory maintenance workers. b. Wages of forklift operators who move

Question

a. Wages of factory maintenance workers.

b. Wages of forklift operators who move finished goods from acentral warehouse to the loading dock

c. Insurance premiums paid on the headquarters of amanufacturing company

d. Cost of labels attached to shirt made by a company

e. Property taxes on a manufacturing plant

f. Paper towels used in factory restrooms

g. Salaries of office assistants in a law firm

h. Freight costs of acquiring raw material from suppliers

i. Computer paper used in an accounting firm

j. Cost of wax to make candles

k. Freight-in on a truckload of furniture purchased forresale

21. LO.2 & LO.3 ( Cost behavior and classification) Classifyeach of the following cost insured in manufacturing bicycles asvariable (V), fixed (F), or mixed (M) cost (using number of unitsproduced as the activity measure). Also indicate whether the costis direct material (DM), direct labor (DL), or overhead (OH).

a. Factory supervision

b. Aluminum tubing

c. Rims

d. Emblem

e. Gearbox

f. Straight-line depreciation on paint machine

g. Fenders

h. Inventory clerk’s salary

i. Inspector’s salary

j. Handlebars

k. Metal worker’s wages

l. Roller chain

m. Spokes (assuming cost is considered significant)

n. Paint (assuming cost is considered significant)

Explanation / Answer

Fixed c. Insurance premiums paid on the headquarters of amanufacturing company e. Property taxes on a manufacturing plant g. Salaries of office assistants in a law firm
c. Insurance premiums paid on the headquarters of amanufacturing company e. Property taxes on a manufacturing plant g. Salaries of office assistants in a law firm
c. Insurance premiums paid on the headquarters of amanufacturing company e. Property taxes on a manufacturing plant g. Salaries of office assistants in a law firm
e. Property taxes on a manufacturing plant g. Salaries of office assistants in a law firm
g. Salaries of office assistants in a law firm
Variable d. Cost of labels attached to shirt made by a company f. Paper towels used in factory restrooms h. Freight costs of acquiring raw material fromsuppliers i. Computer paper used in an accounting firm j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
d. Cost of labels attached to shirt made by a company f. Paper towels used in factory restrooms h. Freight costs of acquiring raw material fromsuppliers i. Computer paper used in an accounting firm j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
d. Cost of labels attached to shirt made by a company f. Paper towels used in factory restrooms h. Freight costs of acquiring raw material fromsuppliers i. Computer paper used in an accounting firm j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
f. Paper towels used in factory restrooms h. Freight costs of acquiring raw material fromsuppliers i. Computer paper used in an accounting firm j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
h. Freight costs of acquiring raw material fromsuppliers i. Computer paper used in an accounting firm j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
i. Computer paper used in an accounting firm j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
k. Freight-in on a truckload of furniture purchased forresale
Mixed a. Wages of factory maintenance workers. b. Wages of forklift operators who move finished goods from acentral warehouse to the loading dock a. Wages of factory maintenance workers. b. Wages of forklift operators who move finished goods from acentral warehouse to the loading dock
Product/service (PT) a. Wages of factory maintenance workers. b. Wages of forklift operators who move finished goods from acentral warehouse to the loading dock d. Cost of labels attached to shirt made by a company f. Paper towels used in factory restrooms h. Freight costs of acquiring raw material fromsuppliers j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
Period (PD) cost. c. Insurance premiums paid on the headquarters of amanufacturing company e. Property taxes on a manufacturingplant g. Salaries of office assistants in a lawfirm i. Computer paper used in an accountingfirm Product/service (PT) a. Wages of factory maintenance workers. b. Wages of forklift operators who move finished goods from acentral warehouse to the loading dock d. Cost of labels attached to shirt made by a company f. Paper towels used in factory restrooms h. Freight costs of acquiring raw material fromsuppliers j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
Period (PD) cost. b. Wages of forklift operators who move finished goods from acentral warehouse to the loading dock d. Cost of labels attached to shirt made by a company f. Paper towels used in factory restrooms h. Freight costs of acquiring raw material fromsuppliers j. Cost of wax to make candles k. Freight-in on a truckload of furniture purchased forresale
Period (PD) cost. c. Insurance premiums paid on the headquarters of amanufacturing company e. Property taxes on a manufacturingplant g. Salaries of office assistants in a lawfirm i. Computer paper used in an accountingfirm c. Insurance premiums paid on the headquarters of amanufacturing company e. Property taxes on a manufacturingplant g. Salaries of office assistants in a lawfirm i. Computer paper used in an accountingfirm e. Property taxes on a manufacturingplant g. Salaries of office assistants in a lawfirm i. Computer paper used in an accountingfirm

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