Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale

Question

3 years ago

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Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale

of these auto parts, classify each cost as either variable costs, fixed costs, or mixed costs. 1. Oil used in manufacturing equipment 2. Plastic 3. Property taxes, $165,000 per year on factory building and equipment 4. Salary of plant manager 5. Cost of labor for hourly workers 6. Packaging 7. Factory cleaning costs, $6,000 per month 8. Metal 9. Rent on warehouse, $10,000 per month plus $25 per square foot of storage used 10. Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000 11. Straight-line depreciation on the production equipment 12. Hourly wages of machine operators 13. Electricity costs, $0.20 per kilowatt-hour 14. Computer chip (purchased from a vendor) 15. Pension cost, $1.00 per employee hour on the job

Social Studies

1 answer:

Marat540 [252] · Answer 1 · 2022-07-10T06:28:28+03:00

Answer:

Oil used in manufacturing equipment

Variable

Plastic

Variable

Property taxes, $165,000 per year on factory building and equipment

Fixed

Salary of plant manager

Fixed

Cost of labor for hourly workers

Variable

Packaging

Variable

Factory cleaning costs, $6,000 per month

Fixed

Metal

Variable

Rent on warehouse, $10,000 per month plus $25 per square foot of storage used

Mixed

Property insurance premiums, $3,600 per month plus $0.01 for each dollar of property over $1,200,000

Mixed

Straight-line depreciation on the production equipment

Fixed

Hourly wages of machine operators

Variable

Electricity costs, $0.20 per kilowatt-hour

Variable

Computer chip (purchased from a vendor)

Variable

Pension cost, $1.00 per employee hour on the job

Variable

Explanation:

Variable costs are cost that proportionately change with the changes in the activity base unit of production.

Fixed cost: cost that remain constant in total dollar amount irrespective to the change in the activity base unit of production.

Mixed cost: cost that possess characteristics of both fixed and variable costs.