Cost classification (fixed cost, variable costs, mixed costs)

Cost Classification (Fixed Cost, Variable Costs, Mixed Costs)

 

a.  Wood for framing the sofas:   

b.  Salary of production vice president: 

c.  Rent on experimental equipment, $50 for every sofa produced: 

d.  Rental costs of warehouse, $30,000 per month:  

e.  Insurance premiums on property, plant, and equipment, $25,000 per year plus $25 per $25,000 of insured value over $16,000,000:

f.  Consulting fee of $120,000 paid to efficiency specialists:

g.  Salesperson’s salary, $80,000 plus 4% of the selling price of each sofa sold:  

h.  Janitorial supplies, $25 for each sofa produced: 

i.   Employer’s FICA taxes on controller’s salary of $180,000: 

j.  Fabric for sofa coverings: 

k.  Hourly wages of sewing machine operators: 

l.  Sewing supplies: 

m.  Salary of designers: 

n.  Foam rubber for cushion fillings: 

o.  Electricity costs of $0.13 per kilowatt-hour: 

p.  Springs: 

q.  Property taxes on property, plant, and equipment:

r.  Straight-line depreciation on factory equipment: 

s.  Cartons used to ship sofas: 

t.  Legal fees paid to attorneys in defense of the company in a patent infringement suit, $25,000 plus $160 per hour: 

 

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