Problem 5

Classify each of the following costs as variable, fixed, mixed, or step by writing an X under one of the following headings (Sales volume is the cost driver).

		Variable		Fixed		Mixed		Step
1.	Total selling and administrative costs
2.	Salaries of supervisors (each supervisor is in charge of five production employees)
3.	Raw materials used in production
4.	Power consumption in a restaurant
5.	Cost of goods sold in a restaurant
6.	Salaries of employees who handle 20 claims per month
7.	Pulpwood in a paper mill
8.	Salaries of two secretaries in the corporate office
9.	Total current manufacturing costs
10.	The cost of an automobile rented on the basis of a daily charge plus $0.50 per mile					X