Question

	Variable	Fixed	Product cost	Non manuf. cost
Materiales Director			X
Mano de Obra Directa			x
Alquiler Edificio		X
Salarios de Supervisores		X
Comisiones de Venta	X
Utilidades ‘ Fabricas			X
Oficina de Ventas de Alquiler		X
Depresiacion ‘ Fabrica				X
Depresaiacion Equipo de Ventas				X
Publicidad	X
Costo de Facturacion			X
Costo de Envio			X
Trabajador de Linea Salarial			X

Answer 1

• Variable cost is a type of cost that varies with the volume of production. Therefore, Direct material, direct labor, sales commissions, are parts of the variable costs and remainder all other costs are parts of fixed costs.
• Product cost is the cost incurred to produced the final product. Therefore, direct material, direct labor, factory supervisor's salary, manufacturing utilities, factory depreciation, and salary line worker are parts of the product cost and remainder all other costs are parts of non-manufacturing costs.