Identifying variable, fixed, and mixed costs Holly’s Day Care has been in operation for several years. Identify each cost as a variable (V), fixed (F), or mixed (M), relative to the number of students enrolled. Building rent. Toys. Compensation of the office manager, who receives a salary plus a bonus based on the number of students enrolled. Afternoon snacks. Lawn service contract at $200 per month. Holly’s salary. Wages of afterschool employees. Drawing paper for student artwork. Straight-line depreciation on furniture and playground equipment. The fee paid to a security company for monthly service.
Identifying variable, fixed, and mixed costs Holly’s Day Care has been in operation for several years. Identify each cost as a variable (V), fixed (F), or mixed (M), relative to the number of students enrolled. Building rent. Toys. Compensation of the office manager, who receives a salary plus a bonus based on the number of students enrolled. Afternoon snacks. Lawn service contract at $200 per month. Holly’s salary. Wages of afterschool employees. Drawing paper for student artwork. Straight-line depreciation on furniture and playground equipment. The fee paid to a security company for monthly service.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Identifying variable, fixed, and mixed costs
Holly’s Day Care has been in operation for several years. Identify each cost as a variable (V), fixed (F), or mixed (M), relative to the number of students enrolled.
- Building rent.
- Toys.
- Compensation of the office manager, who receives a salary plus a bonus based on the number of students enrolled.
- Afternoon snacks.
- Lawn service contract at $200 per month.
- Holly’s salary.
- Wages of afterschool employees.
- Drawing paper for student artwork.
- Straight-line depreciation on furniture and playground equipment.
- The fee paid to a security company for monthly service.
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