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 variable, fixed, or mixed.1. Cost of labor for hourly workers 2. Factory cleaning costs, $6,000 per month 3. Hourly wages of machine operators 4. Computer chip (purchased from a vendor) 5. Electricity costs, $0.20 per kilowatt-hour 6. Metal 7. Salary of plant manager 8. Property taxes, $165,000 per year on factory building and equipment 9. Plastic 10. Oil used in manufacturing equipment 11. Rent on warehouse, $10,000 per month plus $25 per square foot of storage used 1. Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000 13. Straight-line depreciation on the production equipment 14. Pension cost, $1.00 per employee hour on the job 15. Packaging

Variable Cost: The cost which is not fixed is called a variable cost. This cost is directly…

Answered: Following is a list of various costs…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1E: Classify Costs Following is a list of various costs incurred in producing replacement automobile...

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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 variable, fixed, or mixed.

1. Cost of labor for hourly workers
2. Factory cleaning costs, $6,000 per month
3. Hourly wages of machine operators
4. Computer chip (purchased from a vendor)
5. Electricity costs, $0.20 per kilowatt-hour
6. Metal
7. Salary of plant manager
8. Property taxes, $165,000 per year on factory building and equipment
9. Plastic
10. Oil used in manufacturing equipment
11. Rent on warehouse, $10,000 per month plus $25 per square foot of storage used
1. Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000
13. Straight-line depreciation on the production equipment
14. Pension cost, $1.00 per employee hour on the job
15. Packaging

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