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Managerial accounting

Can you please help me answer the following question:


accounting2.png

accounting2.png
Question 1 (40 total points)
Required: For each cost item in the table below, first indicate whether it would be variable (V) or
fixed (F) with respect to the number of units produced and sold. Then, if appropriate, write down
whether the item is a selling or administrative cost (S or A). If the item is a manufacturing cost, leave
the selling or administrative cost column blank. For an item that is a manufacturing cost write down
whether it would typically be treated as a direct cost or an indirect cost (D or I) with respect to the
activity level, in the third column. Points will be deducted for filling in more than one box per
category (e.g. you should not fill both variable and fixed cost per item).
Cost Item
Variable (V)
Selling (S) or
Manufacturing
or Fixed (F)
Administrative
Cost, Direct (D) or
Cost
(A) Cost
Indirect (I)
1.
Plane ticket for a sales
A
person going to her national
sales convention.
2.
Supervisor's salary at a
I
General Motors plant.
3.
Soap and towels used in
F
company headquarters
washrooms.
4.
Lease of computers in the
F
CEO's office of a large
firm
5.
Fringe benefits paid to
J
factory workers who make
washing machines.
6.
Life insurance for
F
executives in company's
sales division.
7.
Salary of a manager in the
A
advertising department
Commissions paid to
A
salespersons selling phone
services.
9.
Depreciation of a children's
F
day care facility at the
corporate office of a large
company.
10.
Inspirational posters
A
encouraging people to work
hard that were purchased to
decorate factory walls.

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