The property tax on the building that houses the manufacturing facility of a company is: * A period cost An opportunity cost A product cost O A variable cost
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- 1. Property taxes on a manufacturing plant is an element of: a. Conversion cost b. Prime cost c. Period cost d. Fixed cost 2. Factory supplies for manufacturing plant are generally a. Prime cost b. Fixed cost c. Period cost d. Variable cost 3. Wages paid to timekeeper in a factory is a a. Prime cost b. Direct Material c. Conversion cost d. Direct laborPlease solve this MCQs How would property taxes paid on a factory building be classified in a manufacturing company? Variable, period cost. Fixed, product cost. Fixed, period cost. Variable, product cost.An example of an uncontrollable cost would include all of the following except______. A. real estate taxes charged by the county in which the business operates B. per-gallon cost of fuel for the companys delivery trucks C. hourly rate of pay for the companys purchasing manager D. federal income tax rate paid by the company
- How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipmentAn example of an uncontrollable cost would include all of the following except ________. A) hourly rate of pay for the company's purchasing manager B) federal income tax rate paid by the company C) real estate taxes charged by the county in which the business operates D) per-gallon cost of fuel for the company's delivery trucksTwo fixtures are being considered for a particular job in a manufacturing firm. The pertinent data for their comparison are summarized in Table. The effective federal and state income tax rate is 25%. Depreciation recapture is also taxed at 25%. If the after-tax MARR is 8% per year, which of the twofixtures should be recommended? State any important assumptions you make in your analysis.
- The direct costing method is important because: a) allows the calculation of the break-even point b) the products absorb all direct and indirect costs c) is recommended by tax legislation d) takes into account only direct costsAn air-conditioning system is installed in a building under construction. Thebill for installation is the cost of the parts plus overhead plus sales tax. Theoverhead is 75% of the cost of the parts. The parts cost $3,500. The sales taxis 4% of the cost of parts plus overhead.a. Find the cost of the overhead.b. Find the sales tax.c. Find the total amount of the bill.Which of the following costs would be considered a period rather than a product cost in a manufacturing company? Manufacturing equipment depreciation. Property taxes on corporate headquarters. Direct materials costs. Electrical costs to light the production facility.
- Choose the letter of the correct answer: Which of the following are examples of a mixed cost? I - A building that is used for both manufacturing and sales activities. II - An employee's compensation, which consists of a flat salary plus a commission. III - Depreciation that relates to five different machines. IV - Maintenance cost that must be split between sales and administrative offices.a. I only.b. II only.c. I and III.d. I, III, and IV.e. I, II, III, and IVThe Lombard Company produces and sells office-space dehumidifiers to companies that own or rent office space. (a) Lombard’s materials and labor costs for producing the dehumidifiers are $3,000 per unit and the fixed costs of its dehumidifier production plant are $1.85 million. If Lombard sells a dehumidifier for $5,000 per unit, what is its percent contribution margin? Show your work. (b) If Lombard used revenue-based compensation to pay its sales force, what would be a salesperson’s sales credit for selling 20 dehumidifiers at a price of $4,500? Show your work. (c) If Lombard used the profit-based compensation method described in the course to pay its sales force and sets the dehumidifier’s target price at $5,000 per unit, what would be a salesperson’s sales credit for selling 20 dehumidifiers at a price of $4,500? Show your work. (d) Explain the benefit to Lombard’s management of using the profit-based compensation method of Part (c) over revenue-based compensation for…For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold, and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product 1. Property taxes, factory 2 Boxes used for packaging detergent produced by the company. 3. Salespersons commissions 4. Supervisor's salary factory 5. Depreciation, encive autos 6. Wages of workers assembling computers 7. Insurance, finished goods warehouses Lubricants for production equipment 9. Advertising costs 10. Microchips used in producing calculators 11. Shipping costs on merchandise sold
