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labwork [276]
2 years ago
6

Jane Dough Pizza's manager is now getting detailed costs for offering delivery service and needs to properly categorize them as

either fixed or variable costs.
Please indicate whether each of the following items is a fixed cost or a variable cost.
a. Boxes for pizzas being delivered
b. Mileage reimbursement for delivery drivers
c. Monthly salary of programmer in charge of e-commerce website
d. Cost of raw materials for pizzas that get delivered
e. Monthly building lease
Business
1 answer:
pashok25 [27]2 years ago
3 0

Answer:

variable costs.

variable costs.

fixed cost

variable costs.

fixed cost

Explanation:

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.  

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.  

If no pizzas are delivered, there would be no need for boxes. thus boxes of pizza is a variable cost

the salary of the programmer is not dependent on the level of output. thus it is a fixed cost

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3 years ago
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were
AlekseyPX

Answer:

Hannon Company

Assembly Department

Responsibility Report

For the month of April 2020:

                               Budget       Actual      Variance

Indirect materials   $16,000    $14,300     $1,700  F

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Explanation:

a) Data and Calculations:

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Indirect materials   $16,000    $14,300     $1,700  F

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Total                      $51,000   $50,750      $250  F

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