Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity and the
Question:
Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity and the associated activity driver that allow you to define the cost behavior. For example, assume that the resource input is "cloth in a shirt." The activity would be "sewing shirts," the cost behavior "variable," and the activity driver "units produced." Prepare your answers in the following format:
a. Power to operate a drill
b. Engine in a lawn mower
c. Advertising
d. Sales commissions
e. Fuel for a forklift
f. Depreciation on a warehouse
g. Depreciation on a forklift used to move partially completed goods
h. X-ray film used in the radiology department of a hospital
i. Rental car provided for a client
j. Amalgam used by a dentist
k. Salaries, equipment, and materials used for setting up production equipment
l. Forms used to file insurance claims
m. Equipment, labor, and parts used to repair and maintain production equipment
n. Printing and postage for advertising circulars
o. Salaries, forms, and postage associated with purchasing
Step by Step Answer:
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan