Water Works Plumbing Company is a small owner-managed plumbing services company that serves the greater Miami metropolitan area. Identify each of the following costs as either a variable, a fixed, or a quasi-fixed cost and give a detailed explanation. f) Expense for plumbing service consumables: plumbers’ putty, Teflon tape, pipe lubricant, sandpaper, PVC glue, butane for torch, etc.

Water Works Plumbing Company is a small owner-managed plumbing services company that serves the greater Miami metropolitan area. Identify each of the following costs as either a variable, a fixed, or a quasi-fixed cost and give a detailed explanation. f) Expense for plumbing service consumables: plumbers’ putty, Teflon tape, pipe lubricant, sandpaper, PVC glue, butane for torch, etc.

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...

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Water Works Plumbing Company is a small owner-managed plumbing services company that serves the greater Miami metropolitan area. Identify each of the following costs as either a variable, a fixed, or a quasi-fixed cost and give a detailed explanation. c) Cost of a complete set of tools needed to be a plumber. d) Labor expense for an assistant plumber who is hired on an hourly basis and works with the owner-manager of the firm when the owner needs a helper.
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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)
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Sutton Construction Inc is a privately held, family founded corporation on that builds single and multiple - unit housing. Most projects sutton Construction undertakes involve the construction of multiple units. Sutton Construction has adopted a job order costing system for determining the cost of each unit. The costing system is fully computerized. Each project's costs are divided into following five categories: 1. General conditions, including construction site utilities, project insurance permits and licenses, architect fees, decorating, field office salaries, and clean up costs 2. Hard costs, such as subcontractors, direct materials and direct labor 3. Finance costs, including title and recording fees, inspection fees, and taxes and discounts on mortgages 4. Land costs, which refer to the purchases price of the construction site 5. Marketing costs, such as advertising, sales commisions, and appraisal fees Recently, sutton corporation purchased land for the purposes of developing 20…
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