(Classifying different costs as prime, variable overhead, or fixed overhead, LO 4)

Whonock Ltd. (Whonock) is a manufacturer of fine wood furniture. For each of the following items, indicate whether Whonock would classify the costs associated with each of the following as a prime cost, variable overhead cost, or fixed overhead cost.

Provide a brief explanation for each classification.

work done by the furniture makers

f. people who clean the workshop

. wood g. glue, nails, and other supplies electricity to operate tools h. shipping crates for the finished

. heat for the workshop furniture amortization of the tools and equipment used by the furniture makers