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.
