Question

Following is a list of various costs incurred in producing computer monitors.
With respect to the production and sale of these monitors, classify each cost as either variable, fixed, or mixed.
1. Computer chip (purchased from a vendor)
2. Electricity costs, $0.18 per kilowatt-hour
3. Hourly wages of inspectors
4. Hourly wages of machine operators
5. Janitorial costs, $6,500 per month
6. Metal
7. Packaging
8. Pension cost, $0.75 per employee hour on the job
9. Plastic
10. Property insurance premiums, $2,900 per month plus $0.08 for each dollar of property over $4,000,000
11. Property taxes, $650,000 per year on factory building and equipment
12. Oil used in manufacturing equipment
13. Rent on warehouse, $32,500 per month plus $3 per square foot of storage used
14. Salary of plant manager
15. Straight-line depreciation on the production equipment



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  • CreatedFebruary 04, 2014
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