Problems 2, 4, 5

PROBLEM 2 Classify the following as either Manufacturing (M), Selling (S), or Administrative (A). 1. Metal for the manufacture of golf clubs 2. Wages of drivers delivering goods to customers 3. Rent on factory building 4. Freight -in of materials purchased 5. President's salary 6. Cost of machine breakdown -7. Power to operate factory equipment 8. Advertising 9. Commission paid to sales personnel -10. Travel expenses of salesmen PROBLEM 4 Classify each of the following costs of Bug Company in two ways: (a) as Variable () or Fixed Costs (Fr: and (b) as Inventoriable (1) or Period Costs (P). (a) V or F (b)I or F Example: Direct labor 1. Wood used in bookcases 2. Machine depreciation based on machine Hrs. 3. Fire insurance on factory equipment 4. Wiring used in radios 5. Indirect materials 6. Sales commissions 7. Bottles used to package liquid 8. Gasoline for delivery truck 9. Straight-line depreciation of trucks used for delivery of sales to customers 10. Machine operator's hourly wages X PROBLEM S Mighty Muffler, Inc operates an automobile service facility, which specializes in replacing mufflers on cars. The following table shows the costs incurred during a month when 750 mufflers were replaced. Number of Muffler Replacements 400 500 P 50,000 P 60,000 P110000 800 Total costs Fixed costs Variable costs Total costs Cost per muffler replacement Fixed cost Variable cost Total cost per replacement Required: Fill in the missing amounts