Answer:
1. Cost of labor for hourly workers - Variable cost
2. Factory cleaning costs - Fixed costs
3. Hourly wages of machine operators - Variable cost
4. Computer Chips purchased - Variable cost
5. Electricity costs - Variable cost
6. Metal - Variable cost
7. Salary of plant manager - Fixed cost
8. Property Taxes - Fixed cost
9. Plastic - Variable cost
10. Oil used in manufacturing equipment - Variable cost
11. Rent on Warehouse - Mixed cost
12. Property insurance - Mixed cost
13. Fixed cost
14. Pension cost - Variable cost
15. Packaging - Variable cost
Explanation:
The classification can be explained as follows. Costs that vary per activity level are examples of variable cost, even materials that are purchased to produce products. Example; the more a hourly employee works the higher his labor cost will be. The more products that are needed to be produced, the more material will be used. This the activity level of the cost driver influences the total cost.
Fixed costs are cost that remain the same despite a change in activity level. Thus the salary manager will be paid the same amount every month and the amount will not change. Other examples of fixed costs are contract costs agreed upon etc.
Mixed costs are cost that have both a variable and fixed component. The property insurance has a variable component ( each dollar value that exceeds 1200000 ) and a fixed component namely the monthly 3600 cost. Thus it is classified as a mixed cost.
