In a furniture company producing tables and chairs made of wood, which of the following would be considered fixed costs? Group of answer choices Wood materials Nails and adhesives Paints and thinners Supervisor’s salaries
Q: For each of the following costs, check the type that most likely apply (both variable and fixed…
A: VARIABLE COST: A variable cost is an expense that rises or falls in direct proportion to production…
Q: of the following would be an example of a direct materials cost? Group of answer choices Engine on…
A: Solution: Direct material costs are those cost which are directly related to product manufacturing…
Q: A owner of a bike shop specializes in custom-built bikes. The Sales Manager & CFO want to talk to…
A: Conventional method of recovering overhead based on single overhead basis is not a proper allocation…
Q: Stetson Manufacturing builds custom wooden cabinets. Classify the following items as a) what…
A: Product Costs Product costs are those costs incurred by an entity to manufacture a particular…
Q: Which of the following is an indirect cost?a. The cost of denim in a jeans factoryb. The cost of…
A: Indirect costs would be those that cannot be linked to a specific cost object or cost source. Costs…
Q: Use a / to categorize each of the following costs. You may have more than one / for each item.…
A: There are majorly three types of costs such as variable costs, fixed costs and semi-variable costs.…
Q: Cost classifications For each of the following costs, check the column(s) thatmost likely apply:Cost…
A: Fixed cost: A fixed cost is a cost incurred by a company that remains fixed irrespective of the…
Q: Which of the following items would be most likely to be stepped costs?
A: Cost is defined as the amount to be incurred upon the production of goods or services which can be…
Q: Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail sale on…
A: Fixed expenses remain fixed in a period, variable expenses vary with each production unit.
Q: For which of the following products would a job-order costing system be appropriate? O a. steel…
A: JOB ORDER COSTING IS A SYSTEM FOR DETERMINING THE COST OF EACH INDIVIDUAL PRODUCT A COMPANY PROVIDES…
Q: Which of the following product costs incurred by a paper manufacturer would NOT be included in the…
A: The total cost incurred on the making or production of the goods is known as the product cost. It…
Q: Which of the following companies would most likely use process costing for the product listed that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Which of the following would be more likely to use job-order costing rather than process costing?…
A: Job order costing is the one in which cost is allocated as per the customization of the customers.…
Q: In which production setting is operation costing most appropriate?
A: Option d is the correct answer.
Q: Indicate whether the following costs of Procter & Gamble, a maker of consumer products, would be…
A: Direct Material cost: Direct material cost is the cost of the material which is directly involved in…
Q: Product vs Period Cost Classifications Mr. Suncat has hired you to help him determine his product…
A: Product costs of the goods are those specifically connected to the manufacturing of the product or…
Q: For which of the following industries would job-order costing most likely not be appropriate? a.…
A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…
Q: What type of cost accounting system would be most appropriate to be used by a candy making company?…
A: Manufacturing Company: A manufacturer is a person or corporation that manufactures completed things…
Q: Select the appropriate cost behavior for each of the costs listed below. Factory supplies Drag…
A: The cost can be classified into two categories i.e fixed cost and variable cost. The FIxed cost…
Q: Which of the following would be more likely to use process costing rather than job-order costing?…
A: Job costing is a part of cost accounting that tracks the cost and revenues of specific jobs. It is a…
Q: A furniture shop has enumerated the following cost determine the classification of the following…
A: Manufacturing cost means the cost which is incurred in factory or related with production of goods.…
Q: Which of the following businesses would most likely use a Job Order cost system (compared to a…
A: Job Order Costing is a method of cost accounting, which is adopted by the business organizations…
Q: Which of the following is an example of direct labor cost for a cell phone manufacturer? Oa. cost of…
A: Direct Labor Cost: It is the cost which can be specifically and consistently assigned to…
Q: Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of…
A: The cost applied in production can be classified as Direct materials, direct labor and factory over…
Q: Which method of determining product costs, job-order costing or process costing, would be more…
A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…
Q: Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor,…
A: Variable cost changes with changing output i.e. higher the sales or production more will be the…
Q: For manufacturing firms, inventoriable costs include ________. a. plant supervisor salaries.…
A: All the production costs become part of the inventory. It includes raw material, labor expenses,…
Q: Evilene makes flying brooms. She has characterized the company's costs below. Indicate in the shaded…
A: Cost Classification: Inventory Manufacturing and Selling Cost can be classified into following…
Q: Granger Cards is a manufacturer of greeting cards. Classify its costs by matching the costs to the…
A: Direct material refers to the material used in the manufacturing of a product that is directly…
Q: All are examples of a conversion cost EXCEPT: a. All the examples given are conversion costs b. The…
A: Conversion cost: This is the cost incurred to convert the raw materials into finished goods. These…
Q: What are the benefits for a company, like Cold Stone Creamery, that products many different products…
A: Activity-based costing a method of assigning overheads based on usage of a particular activity.…
Q: Which is correct about job-order costing? a. Job-order costing would be appropriate for a textbook…
A: Job order costing is used to determine whether a job is profitable. It helps to create a unique…
Q: . Classify each cost as either fixed or variable, and either a product or a period cost by placing…
A: Cost: cost is the expenses incurred in a Firm Classification of Costs Cost can be classified into 2…
Q: Distinguishing between job order costing and process costing Would the following companies most…
A: Job order costing is one of the methods of cost accounting under which cost is collected and…
Q: Which of the following is not considered a cost of manufacturing a product? Group of answer choices…
A: Total manufacturing cost, or simply the cost of producing the things that will be sold to customers,…
Q: With respect to manufacture and sale of shirts, the salary of the factory manager would be…
A: Variable cost is the cost that changes with the change of output but per unit variable cost is fixed…
Q: An assisted-living facility provides services in the form of residential space, meals, and other…
A: Cost pool rate for the first activity is $7,200,000 / 60,000 days = $120 per occupant day Cost pool…
Q: Which among the following decision can be taken with Life Cycle Costing method? a. Making choice…
A: Answer: Life cycle costing is the method in entire cost for the life of product is included.
Q: Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer products, would…
A: Direct Material costs- Costs incurred to procure materials that are directly consumed in the…
Q: I - Product costs are historical figures and therefore are of little use to the manager. II - A…
A: The answer for the True or false question and relevant explanation are presented hereunder : Product…
Q: Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of…
A: Cost Cost classification a Factory overhead cost
Q: For apparel manufacturer Abercrobmie & Fitch, Inc., classify each of the following costs as either a…
A: Period costs and product costs are two categories of costs for a company that are incurred in…
Q: Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for an automobile…
A: Prime cost: Prime cost refers to a cost which is directly involved in the process of manufacturing…
Q: Cost classifications For each of the following costs, check the column(s) that most likely applies…
A: Fixed cost: A fixed cost is a cost incurred by a company that remains fixed irrespective of the…
- In a furniture company producing tables and chairs made of wood, which of the following would be considered fixed costs?
Step by step
Solved in 2 steps
- Which of these costs would be the most difficult to estimate when you know exactly how many units will be produced? Group of answer choices rent insurance utilities materials used in the productCost classifications For each of the following costs, check the column(s) that most likely applies (apply):Cost Variable FixedRaw 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 _______ _______Real estate taxes for: _______ _______Factory _______ _______Office building _______ _______Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: a. Determine the standard cost per dining room table. b. Why would Atlas Furniture Company use a standard cost system?
- Potterii sells its products to large box stores and recently added a retail line of products to sell directly to consumers. These estimates are to be used in determining the overhead allocation rate for ABC: What would be the predetermined rate for each cost pool?Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity and the associated activity driver that allow you to define the cost behavior. For example, assume that the resource input is cloth in a shirt. The activity would be sewing shirts, the cost behavior variable, and the activity driver units produced. Prepare your answers in the following format: a. Flu vaccine b. Salaries, equipment, and materials used for moving materials in a factory c. Forms used to file insurance claims d. Salaries, forms, and postage associated with purchasing e. Printing and postage for advertising circulars f. Equipment, labor, and parts used to repair and maintain production equipment g. Power to operate sewing machines in a clothing factory h. Wooden cabinets enclosing audio speakers i. Advertising j. Sales commissions k. Fuel for a delivery van l. Depreciation on a warehouse m. Depreciation on a forklift used to move partially completed goods n. X-ray film used in the radiology department of a hospital o. Rental car provided for a clientPocket Umbrella, Inc. is considering producing a new type of umbrella. This new pocket-sized umbrella would fit into a coat pocket or purse. Classify the following costs of this new product as direct materials, direct labor, manufacturing overhead, or selling and administrative. Cost of advertising the product Fabric used to make the umbrellas Maintenance of cutting machines used to cut the umbrella fabric so it will fit the umbrella frame Wages of workers who assemble the product Presidents salary The salary of the supervisor of the people who assemble the product Wages of the product tester who stands in a shower to make sure the umbrellas do not leak Cost of market research survey Salary of the companys sales managers Depreciation of administrative office building
- Products versus Services, Cost Assignment Holmes Company produces wooden playhouses. When a customer orders a playhouse, it is delivered in pieces with detailed instructions on how to put it together. Some customers prefer that Holmes put the playhouse together. Therefore, these customers purchase the playhouse, as well as pay an additional fee for Holmes to install the playhouse. Holmes then pulls two workers off the production line and sends them to construct the playhouse on site. Required: 1. What two products does Holmes sell? Classify each one as a product or a service. 2. CONCEPTUAL CONNECTION Do you think Holmes assigns costs individually to each product or service? Why or why not? 3. CONCEPTUAL CONNECTION Describe the opportunity cost of the installation process.Felipes Restaurant and Pie Shop needs help defining the costs for his business. He also wants to know which costs are relevant or irrelevant to his decision. Identify each cost as relevant or irrelevant. Then identify the type of cost (sunk. fixed, variable, or opportunity).Which of the following would be most likely to use process costing? Oa. lawn fertilizer manufacturer Ob. auto body repair shop Oc. law firm Od. custom furniture manufacturer
- A factory makes wooden chairs. Which of the following items would be most likely to be stepped costs? Question 1 options: 1) Wood used to make chairs 2) Factory supervisors’ salaries 3) Factory workers’ salaries 4) Staples to fix the fabric to the seat of the chairWhich of the following would be an example of a direct materials cost? Group of answer choices Engine on an airplane Screws used to manufacture a lighting fixture Nails used to manufacture a table. Glue used to build cabinets.A factory makes wooden chairs.Which of the following items would be most likely to behave as stepped costs? Wood used to make chair Factory supervisors' salaries Heating and light Staples to fix the fabric to the seat of the chair