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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: a. Shipping boxes used to ship orders b. Consulting fee of $200,000 paid to industry specialist 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 paid to attorneys in defense of the company in a patent infringement suit. $50,000 plus 587 per hour k. Insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per 530,000 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 $0.10 per kilowatt-hour t. Property taxes on property, plant, and equipment Instructions Classify the preceding costs as 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. Fixed Cost Cost Mixed Cost Variable Cost

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 21, Problem 21.1APR
Textbook Problem

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:

a. Shipping boxes used to ship orders

b. Consulting fee of $200,000 paid to industry specialist 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 paid to attorneys in defense of the company in a patent infringement suit.

$50,000 plus 587 per hour

k. Insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per 530,000 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 $0.10 per kilowatt-hour

t. Property taxes on property, plant, and equipment

Instructions

Classify the preceding costs as 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.

Fixed Cost Cost Mixed Cost Variable Cost

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Chapter 21 Solutions

Accounting
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