For each of the following costs incurred in a manufacturing operation, indicate whether the costs would be
Question:
For each of the following costs incurred in a manufacturing operation,
indicate whether the costs would be fixed, variable, or semi-variable (F, V, or S)
and whether they would be period or product costs (P or R, respectively) under
full-absorption costing:
a.
Transportation-in costs on materials purchased
b.
Assembly line workers' wages
c.
Property taxes
d.
Salaries of top executives in the company
e.
Overtime premium for assembly workers
f.
Sales commissions
g.
Sales personnel office rental
h.
Production supervisory salaries
i.
Controller's office supplies
j.
Executive office heat and air conditioning
k.
Executive office security personnel
l.
Supplies used in assembly work
m. Factory heat and air conditioning
n.
Power to operate factory equipment
o.
Depreciation on furniture for sales staff
p.
Varnish used for finishing product
q.
Marketing personnel health insurance
r.
Packaging materials for finished product
s.
Salary of the quality control manager who checks work on the
assembly line
t.
Assembly line workers' dental insurance
Expert Answer:
a Transportationin costs on materials purchased Variable V Product R b Assembly line workers wages V... View the full answer
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
