Boswitch Co. manufactures furniture. Identify the following costs as Fixed (F), Variable (V), or Mixed (M). ["", "", "", ""] Fabric for sofa coverings ["", "", ""] Legal fees paid to attorneys in defense of the company in a patent infringement suit, $25,000 plus $160 per hour

Boswitch Co. manufactures furniture. Identify the following costs as Fixed (F), Variable (V), or Mixed (M). ["", "", "", ""] Fabric for sofa coverings ["", "", ""] Legal fees paid to attorneys in defense of the company in a patent infringement suit, $25,000 plus $160 per hour

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

See similar textbooks

Similar questions

Classify costs Cromwell Furniture Company manufactures sofas for distribution to several major retail chains. The following costs are incurred in the production and sale of sofas: Fabric for sofa coverings Wood for framing the sofas Legal fees paid to attorneys in defense of the company in a patent infringement suit, $25,000 plus $160 per hour Salary of production supervisor Cartons used to ship sofas Rent on experimental equipment, $50 for every sofa produced Straight-line depreciation on factory equipment Rental costs of warehouse, $30,000 per month Property taxes on property, plant, and equipment Insurance premiums on property, plant, and equipment, $25,000 per year plus $25 per $25,000 of insured value over $16,000,000 Springs for seat cushions Consulting fee of $120,000 paid to efficiency specialists Electricity costs of $0.13 per kilowatt-hour Salesperson’s salary, $80,000 plus 4% of the selling price of each sofa sold Foam rubber for cushion fillings Janitorial supplies, $2,500…
clasify each costs as either fixed, variable or mixed: a. shipping boxes used to ship orders b. consulting fee of $200,000 paid to industry specialists for marketing advice c.straight-line depreciation on sewing machines d. salesperson's salary, $10,000 plus 2% of the total sales e. fabric f. dye g. thread h. salary of designers i. brass buttons j. legal fees apid to attorneys in defense of the company in a patent infringement suit, $50,000 plus $87 per hour k. insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per $30,000 of insured value over $8,000,000 l. rental costs of warehouse, $5,000 per month plus $4 per square foot of storage used m. supplies n. leather for patches identifying the brand on individual pieces of apparel o. rent on plant equipment, $50,000 per year p. salary of production vice president q. janitorial services, $2,200 per month r. wages of machine operators s. electricity costs of $.10 per kilowatt-hour t. property taxes on property,…
Classify Costs Cromwell Furniture Company manufactures sofas for distribution to several major retail chains. The following costs are incurred in the production and sale of sofas: Required: Classify the costs as either fixed costs, variable costs, or mixed cost. a. Fabric for sofa coverings b. Wood for framing the sofas c. Legal fees paid to attorneys in defense of the company in a patent infringement suit, $25,000 plus $160 per hour d. Salary of production supervisor e. Cartons used to ship sofas f. Rent on experimental equipment, $50 for every sofa produced g. Straight-line depreciation on factory equipment h. Rental costs of warehouse, $30,000 per month i. Property taxes on property, plant, and equipment j. Insurance premiums on property, plant, and equipment, $25,000 per year plus $25 per $25,000 of insured value over $16,000,000 k. Springs l. Consulting fee of $120,000 paid to efficiency specialists m. Electricity…
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
Classify costs Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans: Shipping boxes used to ship orders Consulting fee of 200,000 paid to industry specialist for marketing advice Straight-line depreciation on sewing machines Salesperson's salary, 10,000 plus 2% of the total sales Fabric Dye Thread Salary of designers Brass buttons Legal fees paid to attorneys in defense of the company in a patent infringement suit, 50,000 plus 87 per hour Insurance premiums on property, plant, and equipment, 70,000 per year plus 5 per 30,000 of insured value over 8,000,000 Rental costs of warehouse, 5,000 per month plus 4 per square foot of storage used Supplies Leather for patches identifying the brand on individual pieces of apparel Rent on plant equipment, 50,000 per year Salary of production vice president Janitorial services, 2,200 per month Wages of machine operators Electricity costs of 0.10 per kilowatt-hour Property taxes on property, plant, and equipment Instructions Classify the preceding costs as either fixed, variable, or mixed. Use the following tabular headings and place an X in the appropriate column. Identify each cost by letter in the cost column.
Regal Executive, Inc., produces executive motor coaches and currently manufactures the cent awnings that accompany them at these costs: The company received an offer from Saied Tents to produce the awnings for $3,200 per unit and supply 1,000 awnings for the coming years estimated production. If the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the companys total labor costs (direct labor and supervisor salaries) will remain the same if the bar inserts are purchased. The specialized equipment cannot be used and has no market value. However, the space occupied by the awning production can be used by a different production group that will lease it for $60,000 per year. Should the company make or buy the awnings?
Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as either variable, fixed, or mixed. 1. Oil used in manufacturing equipment 2. Plastic 3. Property taxes, 165,000 per year on factory building and equipment 4. Salary of plant manager 5. Cost of labor for hourly workers 6. Packaging 7. Factory cleaning costs, 6,000 per month 8. Metal 9. Rent on warehouse, 10,000 per month plus 25 per square foot of storage used 10. Property insurance premiums, 3,600 per month plus 0.01 for each dollar of property over 1,200,000 11. Straight-line depreciation on the production equipment 12. Hourly wages of machine operators 13. Electricity costs, 0.20 per kilowatt-hour 14. Computer chip (purchased from a vendor) 15. Pension cost, 1.00 per employee hour on the job
Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Classify costs Cromwell Furniture Company manufactures sofas distribution to several major retail chains.The folowing costs are incurred in the production and sale of sofas: Fabric for sofa coverings Wood for framing the sofas Legal fee paid to attorneys in defence of the company in a patent infringement suit.$25,000 plus $160 oer hour. salary of production supervisor cartons used to ship sofas Rent on experimental equipment,$50 for every sofa produced straight-line depreciation on factory equipment Rental costs of warehouses,$30,000 per month Prpperty taxes on property,plant and equipment Insurance premiums on property, plant, and equipment, $25,000 per year plus $25 per $25,000 of insured value over $16,000,000 Springs for seat cushions consulting fee of $120,000 paid to efficiency specialists Electricity costs of $0.13 per kilowatt-hour Salesperson's salary,$80,000 plus 4% of the selling price of each sofa sold Foam rubber for cushion fillings Janitorial supplies,$2,500 per month…
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. A. Wood used to produce desks ($125.00 per desk) B. Production labor used to produce desks ($15 per hour) C. Production supervisor salary ($45,000 per year) D. Depreciation on factory equipment ($60,000 per year) E. Selling and administrative expenses ($45,000 per year) F. Rent on corporate office ($44,000 per year) G. Nails, glue, and other materials required to produce desks (varies per desk) H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)
SWA company is trying find costs of its products. Which of the following statements is true? A cost is: a. Always an expense. b. Always an asset. c. Something quite different from either an expense or an asset. d. Can be either an expense or an asset. e. Always a liability. MS Harius is an accounting in Lata company; the company has leased a copying machine on a monthly basis which is on a fixed fee each month in addition to a charge per copy. Technical made 2,400 copies and paid a total of $162 in rent in September and in October they paid $195 for 3,500 copies Determine the total amount that would be paid for 1,800 copies. a. Some other amount not listed here b. $138 c. $144 d. $160 e. $163
Each year, Giada Company produces 20,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.39. The unit cost is: Direct materials $0.83 Direct labor 0.34 Variable overhead 0.13 Fixed overhead 2.55 Total unit cost $3.85 1. What are the alternatives for Giada Company? a. Make the part in house b.Buy the part externally c.Make the part in house or buy the part externally d.None 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. a.Direct materials, direct labor and variable and fixed overhead b.Direct materials, direct labor and variable overhead c.Direct materials, direct labor and fixed overhead d.None List the relevant cost(s) of external purchase. a.Purchase price b.Sales price c.Material price d.None 3. Which alternative is more cost effective and by how much? a. Making the part in house b. Buying the part from the external supplier by $___________ 4. What if…