Question

Classify the costs below as: Product-Direct, Product-Indirect, or Period AND Variable cost, Fixed cost, or Mixed cost.   Below are budgeted income statements at different team levels, use the information to answer the questions below:

Number of Teams	15	25	30	Product Direct, Product Indirect or Period	Fixed/         Variable
Sales	$1,500	$2,500	$3,000
Cost of Goods Sold
Direct Materials	75	125	150
Direct Labor	150	250	300
Applied Overhead	575	625	650
Gross Profit	$700	$1,500	$1,900
Selling Expenses	300	500	600
Administrative Expenses	280	280	280
Advertising Expenses	200	200	200
Miscellaneous Administrative Expenses	100	100	100
Net Income	$(180)	$420	$720

Answer 1