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Having problems with this, if you could please do the problem so I can compare with my answers that would be great.
The following is a list of various costs of producings weat shirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.
|
(a) |
Lubricants used to oil machinery. |
|
(b) |
Warehouse rent of $6,000 per month plus $.50 per square foot of storage used. |
|
(c) |
Thread. |
|
(d) |
Electricity costs of $.025 per kilowatt-hour. |
|
(e) |
Janitorial costs of $2,000 per month. |
|
(f) |
Advertising costs of $10,000 per month. |
|
(g) |
Sales salaries. |
|
(h) |
Color dyes for producing different colors of sweat shirts. |
|
(i) |
Salary of the production supervisor. |
|
(j) |
Straight-line depreciation on sewing machines. |
|
(k) |
Patterns for different designs. Patterns typically last many years before being replaced. |
|
(l) |
Hourly wages of sewing machine operators. |
|
(m) |
Property taxes on factory, building, and equipment. |
|
(n) |
Cotton and polyester cloth. |
|
(o) |
Maintenance costs with sewing machine company. The cost is $2,000 per year plus $.001 for each machine hour of use. |
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