9 6 7 8 5 4 3 Question # 1 2 For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it. For each question above, select either fixed or variable and mark with an X. Explain your choice in the column marked comment. Fixed Variable Comment

9 6 7 8 5 4 3 Question # 1 2 For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it. For each question above, select either fixed or variable and mark with an X. Explain your choice in the column marked comment. Fixed Variable Comment

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 2TP: This list contains costs that various organizations incur; they fall into three categories: direct...

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I need answers to all parts in this question. Cost Description Possible Measure of Activity 1. Salary of production manager at a surfboard manufacturer Surfboards produced 2. Cost of solder used in making computers Computers produced 3. Cost of dough used at a pizza shop Pizzas cooked 4. Janitorial wages at a surfboard manufacturer Surfboards produced 5. Salary of the controller at a hospital Number of patients 6. Cost of sales at an electronics store Dollar sales 7. Cost of testing materials used in a medical lab Tests run 8. Cost of heating an electronics store Dollar sales 9. Cost of electricity for production equipment at a surfboard manufacturer Surfboards produced 10. Depreciation on shelving at a book store Dollar sales Required:For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it. Essay Toolbar navigation opens in a dialog
Classify the following costs of this new product as direct materials, direct labor, manufacturing overhead, selling, or administrative 1. President's salary. 2. Packages used to hold the skin wipes. 3. Cleaning materials used to clean the skin wipe packages. 4. Wages of workers who package the product. 5. Cost of advertising the product. 6. The salary of the supervisor of the workers who package the product. 7. Cost accountant's salary (the accountant works in the factory). 8. Cost of a market research survey. 9. Sales commissions paid as a percent of sales. 10. Depreciation of administrative office building. Problem B Classify the costs listed in the previous problem as either product costs or period costs.
Following are selected costs of a company that manufactures computer chips. Classify each as either a product cost or a period cost. Then classify each of the product costs as direct material, direct labor, or overhead. 1. Plastic boards used to mount chips 2. Advertising costs 3. Factory maintenance workers’ salaries 4. Real estate taxes paid on the sales office 5. Real estate taxes paid on the factory 6. Factory supervisor salary 7. Depreciation on factory equipment 8. Assembly worker hourly pay to make chips
Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Cost Product Cost/Period Cost 1. Depreciation on chairs and tables in the factory lunchroom 2. The wages of the receptionist in the administrative offices 3. Cost of leasing the corporate jet used by the company's executives 4. The cost of renting rooms at a Florida resort for the annual sales conference 5. The cost of packaging the company's product
Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Cost Item Predicting Cost Behavior Preparing Financial Statements 1.Hamburger buns in a Wendy’s restaurant. 2.Advertising by a dental office. 3.Apples processed and canned by Del Monte. 4.Shipping canned apples from a Del Monte plant to customers. 5.Insurance on a Bausch & Lomb factory producing contact lenses. 6.Insurance on IBM’s corporate headquarters. 7.Salary of a supervisor overseeing production of printers at Hewlett-Packard. 8.Commissions paid to automobile salespersons. 9.Depreciation of factory lunchroom facilities at a General Electric plant. 10.Steering wheels installed in BMWs.
Listed below are costs found in various organizations.1. Property taxes, factory.2. Boxes used for packaging detergent produced by the company.3. Salespersons’ commissions.4. Supervisor’s salary, factory.5. Depreciation, executive autos.6. Wages of workers assembling computers.7. Insurance, finished goods warehouses.8. Lubricants for production equipment.9. Advertising costs.10. Microchips used in producing calculators.11. Shipping costs on merchandise sold.12. Magazine subscriptions, factory lunchroom.13. Thread in a garment factory.14. Billing costs.15. Executive life insurance.16. Ink used in textbook production.17. Fringe benefits, assembly-line workers.18. Yarn used in sweater production.19. Wages of receptionist, executive offices.Required:Prepare an answer sheet with column headings as shown below. For each cost item, indicate whetherit would be variable or fixed with respect to the number of units produced and sold; and then whetherit would be a selling cost, an administrative…
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The following is a list of costs incurred by several manufacturing companies: a. Bonus for vice president of marketing b. Costs of operating a research laboratory c. Cost of unprocessed milk for a dairy d. Depreciation of factory equipment e. Entertainment expenses for sale representatives f. Factory supplies g. First-aid nurse for factory workersh. Health insurance premiums paid for factory workers i. Hourly wages of warehouse laboresrs j. Lumber used by furniture manufacturer k. Maintenance costs for factory equipment l. Microprocessors for a microcomputer manufacturer m. Packing supplies for products sold, which are insignificant to the total cost of the product n. Paper used by commercial printer o. Paper used in processing various managerial reports p. Protective glasses for factory machine operators q. Salaries of quality control personnel r. Sales commissions s. Seed for gain farmer t. Television advertisment u. Prebuilt transmissions for an automobile manufacturer v. Wages of a…
For apparel manufacturer Abercrombie & Fitch, Inc., classify each of the following costs as either a product cost or a period cost:a. Cost of information technology support for the corporate headquartersb. Depreciation on sewing machinesc. Fabric used during productiond. Depreciation on office equipmente. Advertising expensesf. Repairs and maintenance costs for sewing machinesg. Salary of production quality control supervisorh. Utility costs for office buildingi. Sales commissionsj. Salaries of distribution center personnelk. Wages of sewing machine operatorsl. Factory janitorial suppliesm. Chief financial officer’s salaryn. Travel costs of media relations employeeso. Factory supervisors’ salariesp. Oil used to lubricate sewing machinesq. Property taxes on factory building and equipment
Indicate for each of the following costs whether it is a product cost or a period cost.1. Wages of aircraft mechanics employed by an airline.2. Wages of drill-press operators in a manufacturing plant.3. Cost of food in a microwavable dinner.4. Cost incurred by a department store chain to transport merchandise to its stores.5. Cost of grapes purchased by a winery.6. Depreciation on pizza ovens in a pizza restaurant.7. Cost of plant manager in a computer production facility.8. Wages of security personnel in a department store.9. Cost of utilities in a manufacturing facility.
Indicate for each of the following costs whether it is a product cost or a period cost.1. Cost of grapes purchased by a winery.2. Depreciation on pizza ovens in a pizza restaurant.3. Cost of plant manager’s salary in a computer production facility.4. Wages of security personnel in a department store.5. Cost of utilities in a manufacturing facility.6. Wages of aircraft mechanics employed by an airline.7. Wages of drill-press operators in a manufacturing plant.8. Cost of food in a microwavable dinner.9. Cost incurred by a department store chain to transport merchandise to its stores.
Problem 1Classify the following as to Fixed, Variable or Mixed Cost1. Factory Rent2. Wages of workers paid based on units produced3. Cost Accountant Salary4. Depreciation based on output5. Salary of Factory supervisor6. Basic Salary plus sales commission of salesman7. Paper in manufacturing of books8. Factory Insurance9. Monthly Depreciation of Building10. Bottle used in packaging