CH 2 HW - Question 1: Score 3/3 Question 2: Score 3/3 Your...

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Unformatted text preview: Question 1: Score 3/3 Question 2: Score 3/3 Your response Correct response Problem 2-14 Cost Classification [LO2, LO5, LO6] For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it would typically be treated as a direct or indirect cost with respect to units of product. Select "None" if none of the categories apply for a particular item. Cost Item Cost Behavior Classification Manufacturing (Product) cost 1. Straight-line depreciation, executive jet Fixed (2%) Administrative cost (2%) None (2%) 2. Costs of shipping finished goods to customers Variable (2%) Selling cost (2%) None (2%) 3. Wood used in manufacturing furniture Variable (2%) Manufacturing cost (2%) Direct cost (2%) 4. Sales manager's salary Fixed (2%) Selling cost (2%) None (2%) 5. Electricity used in manufacturing furniture Variable (2%) Manufacturing cost (2%) Indirect cost (2%) 6. Secretary to the company president Fixed (2%) Administrative cost (2%) None (2%) 7. Aerosol attachment placed on a spray can produced by the company Variable (2%) Manufacturing cost (2%) Direct cost (2%) 8. Billing costs Variable (2%) Administrative cost (2%) None (2%) 9. Packing supplies for shipping products overseas Variable (2%) Selling cost (2%) None (2%) 10. Sand used in manufacturing concrete Variable (2%) Manufacturing cost (2%) Direct cost (2%) 11. Supervisor's salary, factory Fixed (2%) Manufacturing cost (2%) Indirect cost (2%) 12. Executive life insurance Fixed (2%) Administrative cost (2%) None (2%) 13. Sales commissions Variable (2%) Selling cost (2%) None (2%) 14. Fringe benefits, assembly line workers Variable (2%) Manufacturing cost (2%) Direct cost (2%) 15. Advertising costs Fixed (2%) Selling cost (2%) None (2%) 16. Property taxes on finished goods warehouses Fixed (2%) Selling cost (2%) None (2%) 17. Lubricants for production equipment Variable (2%) Manufacturing cost (2%) Indirect cost (2%) Problem 2-14 Cost Classification [LO2, LO5, LO6] For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it would typically be treated as a direct or indirect cost with respect to units of product. Select "None" if none of the categories apply for a particular item. Cost Item Cost Behavior Classification Manufacturing (Product) cost 1. Straight-line depreciation, executive jet Fixed Administrative cost None 2. Costs of shipping finished goods to customers Variable Selling cost None 3. Wood used in manufacturing furniture Variable Manufacturing cost Direct cost 4. Sales manager's salary Fixed Selling cost None 5. Electricity used in manufacturing furniture Variable Manufacturing cost Indirect...
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CH 2 HW - Question 1: Score 3/3 Question 2: Score 3/3 Your...

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