Answer:
1. Direct labor
Variable, Manufacturing and Direct.
2. Executive salaries
Fixed, Administrative.
3. Factory rent
Fixed, Manufacturing and Indirect.
4. Property taxes, factory.
Fixed, Manufacturing and Indirect.
5. Boxes used for packaging detergent produced by the company
Variable, Manufacturing and Direct.
6. Salespersons' commissions
Variable, Selling.
7. Supervisor's salary, factory
Fixed, Administrative.
8. Depreciation, executive autos.
Fixed, Administrative.
9. Wages of workers assembling computers
Variable, Manufacturing and Direct.
10. Insurance, finished goods warehouses
Fixed, Selling.
11. Lubricants for production equipment.
Variable, Manufacturing and Direct.
12. Advertising costs
Fixed, Selling.
13. Microchips used in producing calculators.
Variable, Manufacturing and Direct.
14 Shipping costs on merchandise sold
Variable, Selling.
15. Magazine subscriptions, factory lunchroom
Fixed, Administrative
16. Thread in a garment factory
Variable, Manufacturing and Direct.
17 Executive life insurance
Fixed, Administrative.
18. Ink used in textbook production
Variable, Manufacturing and Direct.
19. Fringe benefits, materials handling workers
Fixed, Administrative.
20. Yarn used in sweater production
Variable, Manufacturing and Direct.
21. Wages of receptionist, executive offices
Fixed, Administrative.
Explanation:
The cost which is affected by the production of units is known as variable cost. The cost which does not vary with the units produced is fixed cost.
The costs which are related to selling and storage of the finished goods is selling cost. The cost which is not affected by units produced and is related to office premises and controlling an organization is administrative cost. The cost which varies with the production of units and is incurred to convert raw material into finished goods is manufacturing cost.
The manufacturing cost which is directly affected by the units produced is direct cost and the manufacturing cost which is not affected by the units produced is indirect cost.
