PROBLEM 1: KleenCar operates a car spa. Incoming cars are put on an automatic conveyor belt....

Transcribed Image Text:

PROBLEM 1: KleenCar operates a car spa. Incoming cars are put on an automatic conveyor belt. Cars are washed as the conveyor belt carries the car from the start station to the finish station. After the car moves off the conveyor belt, the car is dried manually. Workers then clean and vacuum the inside of the car. Carl serviced 80,000 cars in 2013. He reports the following costs for 2013: Car wash labor Soap, cloth, and supplies Water P 90,000 40,000 24,000 Electric power to move conveyor belt 64,000 Depreciation 70,000 150,000 Salaries* Office Rent Flyers for ads * Salaries are composed of 60% operation and 40% administrative Required: 1. Classify the following costs as to: a. Function b. Timing of recognition c. Traceability d. Behavior 30,000 5,000 PROBLEM 1: KleenCar operates a car spa. Incoming cars are put on an automatic conveyor belt. Cars are washed as the conveyor belt carries the car from the start station to the finish station. After the car moves off the conveyor belt, the car is dried manually. Workers then clean and vacuum the inside of the car. Carl serviced 80,000 cars in 2013. He reports the following costs for 2013: Car wash labor Soap, cloth, and supplies Water P 90,000 40,000 24,000 Electric power to move conveyor belt 64,000 Depreciation 70,000 150,000 Salaries* Office Rent Flyers for ads * Salaries are composed of 60% operation and 40% administrative Required: 1. Classify the following costs as to: a. Function b. Timing of recognition c. Traceability d. Behavior 30,000 5,000

Answer rating: 100% (QA)

1 Classify the following costs as to a Function Car wash labor Direct labor cost related to the car washing function Soap cloth and supplies Direct ma... View the full answer