The following is a list of various costs of producing sweatshirts. Classify each

Question

The following is a list of various costs of producing sweatshirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold. Electricity costs of $0,025 per kilowatt-hour. Warehouse rent of $6,000 per month plus $0.50 per square foot of storage used. Thread. Zip used in sweatshirts. Janitorial costs of $2,000 per month. Advertising costs of $10,000 per month. Plant manager salary. Color dyes for producing different colors of sweatshirts. Salary of the production supervisor, Straight-line depreciation on sewing machines. Patterns for different designs. Patterns typically last many years before being replaced. Maintenance costs for the company's sewing machine. The cost is $2,000 per year plus $0,001 for each machine hour of use. Property taxes on factory, building, and equip men Cotton and polyester cloth. Hourly wages of sewing machine operators.

Explanation / Answer

a) Electricity csot - Mixed since varies with the electricity consumed.and part is fixed

b) Mixed - since it is combimation of fixed and variable

c) Thread - variable varies with shirts

d)Zip used in sweatshirt - Variable

e) Janitorial - fixed

f) Advertisting - fixed

g) Plant manager salry - fixed

h) Cotton dyes - Variable

i) Salary of production manager - Variable

j)Straight line deprectiaon - fixed

k) Patterns - Fixed since they last for long

l) Maintenance costs - fixed

m) property tax - fixed

n) cotton cloth - Variable

0) Hourly wages - variable since will vary with the units

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