Answer:
Part 1
<u>Variable or Fixed</u>
<em>a. Variable Costs</em>
Boxes used for packaging detergent produced by the company.
Wages of workers assembling computers.
Salespersons' commissions.
Microchips used in producing calculators.
Shipping costs on merchandise sold.
Thread in a garment factory.
Fringe benefits, assembly-line workers
Yarn used in sweater production
<em>b. Fixed Costs</em>
Property taxes, factory.
Supervisor's salary, factory.
Depreciation, executive autos.
Insurance, finished goods warehouses.
Lubricants for production equipment.
Advertising costs.
Magazine subscriptions, factory lunchroom.
Billing costs.
Executive life insurance.
Ink used in textbook production.
Wages of receptionist, executive offices.
Part 2
<u>Selling or Administrative or Manufacturing Cost</u>
<em>a. Selling Cost</em>
Salespersons' commissions.
Advertising costs.
Shipping costs on merchandise sold.
<em>b. Administrative Cost</em>
Depreciation, executive autos.
Billing costs.
Executive life insurance.
Wages of receptionist, executive offices.
<em>c. Manufacturing Cost</em>
Property taxes, factory.
Boxes used for packaging detergent produced by the company.
Supervisor's salary, factory.
Wages of workers assembling computers.
Insurance, finished goods warehouses.
Lubricants for production equipment.
Microchips used in producing calculators.
Magazine subscriptions, factory lunchroom.
Thread in a garment factory.
Ink used in textbook production.
Fringe benefits, assembly-line workers
Yarn used in sweater production
Part 3
<u>Direct or Indirect Cost</u>
<em>a. Direct Cost</em>
Boxes used for packaging detergent produced by the company.
Wages of workers assembling computers.
Microchips used in producing calculators.
Thread in a garment factory.
Yarn used in sweater production
<em>b. Indirect Cost</em>
Property taxes, factory.
Supervisor's salary, factory.
Insurance, finished goods warehouses.
Lubricants for production equipment.
Magazine subscriptions, factory lunchroom.
Ink used in textbook production.
Fringe benefits, assembly-line workers
Explanation:
Variable Costs vary with the number of units sold or produced, whilst fixed cost remain constant.
Manufacturing Costs comprises of all costs related to manufacture of the products.
Direct Cost are those that can be easily traced on the product being manufactured, whilst indirect costs are difficult to trace to the product being manufactured.
