Listed below are costs found in various organizations. Required: For each cost item, indicate whether it...

Listed below are costs found in various organizations.

Required:

For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product.

					Manufacturing Cost
	Cost Item	Variable or Fixed	Selling Cost	Admin. Cost	Direct	Indirect
Ex.	Direct Labor	Variable			Yes
	Executive Salaries	Fixed		Yes
	Factory Rent	Fixed				Yes

1	Property taxes, factory
2	Boxes used for packaging detergent produced by the company
3	Salesperson's commission
4	Supervisor's salary, factory
5	Depreciation Executive autos
6	Wages of workers assembling computers
7	Insurance, finished goods warehouses
8	lubricants for production equipment
9	Advertising costs
10	Microchips used in producing calculators
11	Shipping cost on merchandise sold
12	Magazine subscription, factory lunchroom
13	Thread in a garment factory
14	Executive life Insurance
15	Ink used in textbook production
16	Fringe benefits, materials handling workers
17	yarn used in sweater production
18	Wages of receptionist, executive offices

Expert Solution

Cost identification is as shown below:

				Manufacturing Cost
	Cost Item	Variable or Fixed	Selling Cost	Admin. Cost	Direct	Indirect
Ex.	Direct Labor	Variable			Yes
	Executive Salaries	Fixed		Yes
	Factory Rent	Fixed				Yes
1	Property taxes, factory	Fixed				Yes
2	Boxes used for packaging detergent produced by the company	Variable			Yes
3	Salesperson's commission	Variable	Yes
4	Supervisor's salary, factory	Fixed				Yes
5	Depreciation Executive autos	Fixed		Yes
6	Wages of workers assembling computers	Variable			Yes
7	Insurance, finished goods warehouses	Fixed	Yes
8	lubricants for production equipment	Variable				Yes
9	Advertising costs	Fixed	Yes
10	Microchips used in producing calculators	Variable			Yes
11	Shipping cost on merchandise sold	Variable	Yes
12	Magazine subscription, factory lunchroom	Fixed				Yes
13	Thread in a garment factory	Variable				Yes
14	Executive life Insurance	Fixed		Yes
15	Ink used in textbook production	Variable			Yes
16	Fringe benefits, materials handling workers	Fixed				Yes
17	yarn used in sweater production	Variable			Yes
18	Wages of receptionist, executive offices	Fixed		Yes

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