Related questions
Concept explainers
Below are several Costs. Identify them Fixed, Variable or Mixed
UTILITIES DIRECT MATERIALS INSURANCE SNOW REMOVAL QUALITY INSPECTOR CELL PHONE
FREIGHT OUT LAWN SERVICE OFFICE MANAGER DIRECT LABOR FACTORY FOREMAN
Fixed costs:Fixed costs are those costs which remain unchanged even there is a change in the production volume.
Variable costs:Variable costs are those costs which change in proportion to change in the production volume.
Mixed Cost: The cost which is a combination of both the fixed cost and variable cost is called as mixed cost.
Step by stepSolved in 2 steps with 1 images
- Which of the following is NOT a period cost? Multiple Choice O Depreciation of photocopiers in the office. Salary of the accounts payable clerk Insurance on a company showroom where customers can view new products. Salary of the plant supervisor.arrow_forwardIdentify the following as fixed costs (F), variable costs (V), or mixed costs(M). insurance on factory building advertising expensearrow_forwardClassify the above costs of Santana Corporation into activity cost pools using the following: engineering, machinery, machine setup, quality control, factory utilities, maintenance. Budgeted Costs Activity Cost Pool Machine setup, indirect materials Inspections Tests Insurance, plant Engineering design Depreciation, machinery Machine setup, indirect labor Property taxes Oil, heating Electricity, plant lighting Engineering prototypes Depreciation, plant Electricity, machinery Machine maintenance wagesarrow_forward
- Classify each of the following costs as Product (direct/indirect) or Period and Variable, Fixed or Mixed. Costs Raw materials Staples used to secure packed boxes of product Plant janitors' wages Order processing clerks' wages Advertising expenses Production workers' wages Production supervisors' salaries Sales force commissions Maintenance supplies used President's salary Electricity cost for office building Real estate taxes for Factory Real estate taxes for Office building Product-direct Product-indirect Period Period Variable Fixed Variable Fixedarrow_forward2. Controllable vs. Non-Controllable Costs, Direct vs. Indirect Costs The supervisor of the PAINTING DEPARTMENT of Honda Cars is in-charge of (1) purchasing supplies, (2) authorizing repairs, and (3) hiring labor for the department. Various costs are given: A) Sales, salaries and commission B) Salary, supervisor of Painting department C) Factory heat and light D) General office salaries E) Depreciation, factory F) Supplies, Painting department G) Repairs and maintenance, Painting department H) Factory insurance I) Labor costs, Painting department J) Salary of factory supervisor ABCDE P 60,000 50,000 40,000 30,000 20,000 10,000 20,000 30,000 40,000 50,000 TOTAL COSTS Α F G H I J REQUIRED: Determine the following: 1. Total costs controllable by the supervisor of the Painting department. 2. Total costs directly identified with the Painting department. 3. Total costs allocated to the factory departments. 4. 1 X X X X X ✓ ✓ X ✓ X 2 3 On the basis of the answers above, which is a FALSE…arrow_forwardQuestion 1:Assume a local hotel is a service entity. Give some examples of the hotel’s direct and indirect costs, specifying the cost object of each. How might the hotel’s management use this information? Question 2:Discuss what may be the issues in using process costing to estimate the cost of the services produced in mass service entities. Question 3:The following costs relate to Telecommunications Fiji Inc.1. The salaries of the technicians who install new phone and data lines.2. The salaries of the scientists and engineers who develop new services.3. The cost of cables used to connect new services.4. The salaries paid to sales staff.5. The salaries of staff who deal with customer complaints.6. The cost of fuel for vans used by technicians who install new services.7. The cost of advertising in the newspapers.8. The salaries of technicians who resolve service problems.9. The cost of fuels for vans used by technicians who resolve service problems.Required:Classify the costs listed…arrow_forward
- Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for a magazine publisher: a. Paper used for the magazine b. Wages of printing machine employees c. Glue used to bind magazine d. Maintenance on printing machinesarrow_forwardWhich one of the following costs would not be inventoriable? Production electric bill Wages of forklift driver loading finished product onto delivery vans Plastic gloves worn by assembly line workers Wages of maintenance workers in a factoryarrow_forwardWhich of the following costs is best classified as a fixed cost with respect to volume of activity? (See your Chapter 20 notes, page 5) Direct labor Electricity used to heat, light, and cool a factory Cleaning supplies used in an automobile assembly plant Straight-line depreciation expense of a machine used in a factory Total cost of salaries paid to quality inspectors in a manufacturing plant Tires used in an automobile manufacturing plantarrow_forward
- Please do not give solution in image format thankuarrow_forwardClassifying costsThe following is a list of costs that were incurred in the production andsale of lawn mowers: a. Premiums on insurance policy for factory buildingsb. Tires for lawn mowersc. Filter for spray gun used to paint the lawn mowersd. Paint used to coat the lawn mowers, the cost of which isimmaterial to the cost of the final product e. Plastic for outside housing of lawn mowersf. Salary of factory supervisorg. Hourly wages of operators of robotic machinery used inproduction h. Engine oil used in mower engines prior to shipmenti. Salary of vice president of marketingj. Property taxes on the factory building and equipmentk. Cost of advertising in a national magazine1. Gasoline engines installed in the lawn mowers m. Electricity used to run the robotic machineryn. Straight-line depreciation on the robotic machinery used tomanufacture the lawn mowerso. Salary of quality control supervisor who inspects each lawnmower before it is shipped p. Attorney fees for drafting a new lease…arrow_forwardQuestion 1: Assume a local hotel is a service entity. Give some examples of the hotel’s direct and indirect costs, specifying the cost object of each. How might the hotel’s management use this information? Question 2: Discuss what may be the issues in using process costing to estimate the cost of the services produced in mass service entities. Question 3: The following costs relate to Telecommunications Fiji Inc. 1. The salaries of the technicians who install new phone and data lines. 2. The salaries of the scientists and engineers who develop new services. 3. The cost of cables used to connect new services. 4. The salaries paid to sales staff. 5. The salaries of staff who deal with customer complaints. 6. The cost of fuel for vans used by technicians who install new services. 7. The cost of advertising in the newspapers. 8. The salaries of technicians who resolve service problems. 9. The cost of fuels for vans used by technicians who resolve service problems. Required: Classify the…arrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education