Question: Seymour Clothing Co manufactures a variety of clothing types for

Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans:
a. Shipping boxes used to ship orders
b. Consulting fee of $ 200,000 paid to industry specialist for marketing advice
c. Straight- line depreciation on sewing machines
d. Salesperson’s salary, $ 10,000 plus 2% of the total sales
e. Fabric
f. Dye
g. Thread
h. Salary of designers
i. Brass buttons
j. Legal fees paid to attorneys in defense of the company in a patent infringement suit, $ 50,000 plus $ 87 per hour
k. Insurance premiums on property, plant, and equipment, $ 70,000 per year plus $ 5 per $ 30,000 of insured value over $ 8,000,000
l. Rental costs of warehouse, $ 5,000 per month plus $ 4 per square foot of storage used m. Supplies
n. Leather for patches identifying the brand on individual pieces of apparel
o. Rent on plant equipment, $ 50,000 per year
p. Salary of production vice president
q. Janitorial services, $ 2,200 per month
r. Wages of machine operators
s. Electricity costs of $ 0.10 per kilowatt- hour
t. Property taxes on property, plant, and equipment

Classify the preceding costs as either fixed, variable, or mixed. Use the following tabular headings and place an X in the appropriate column. Identify each cost by letter in the cost column.
Cost Fixed Cost Variable Cost Mixed Cost

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  • CreatedJune 27, 2014
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