Question: Classify the preceding costs as either fixed, variable, or mixed. Use the following tabular headings and Obj. 1 PR 20-1B Classify costs Cromwell Furniture Company
Classify the preceding costs as either fixed, variable, or mixed. Use the following tabular headings and Obj. 1 PR 20-1B Classify costs Cromwell Furniture Company manufactures sofas for distribution to several major retail chains The following costs are incurred in the production and sale of sofas: a. Fabric for sofa coverings b. Wood for framing the sofas Legal fees paid to attorneys in defense of the company in a patent infringement suit. $25,000 plus $160 per hour d. Salary of production supervisor e Cartons used to ship sofas t. Rent on experimental equipment, $50 for every sofa produced 9. Straight-line depreciation on factory equipment h. Rental costs of warehouse, $30,000 per month Property taxes on property, plant, and equipment Insurance premiums on property, plant, and equipment, $25,000 per year plus $25 per $25,000 of insured value over $16,000,000 k Springs for seat cushions 1. Consulting fee of $120,000 paid to efficiency specialists m. Electricity costs of $0.13 per kilowatt-hour n. Salesperson's salary, $80,000 plus 4% of the selling price of each sofa sold o. Foam rubber for cushion fillings P. Janitorial supplies, $2,500 per month 4. Employer's FICA taxes on controller's salary of $180,000 1. Salary of designers 5 Wages of sewing machine operators t. Sewing supplies Instructions 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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