Question

The Cooper Furniture Company of Potomac, Maryland, assembles two types of chairs (Recliners and Rockers). Separate assembly lines are used for each type of chair. Requirement Classify each cost item (A-1) as follows: Direct or indirect (D or I) costs for the total number of Recliners assembled. b. Variable or fixed (Vor F) costs depending on how total costs change as the total number of Recliners assembled changes. (If in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the total number of Recliners assembled.)
Cost Item D or I
A. Cost of fabric used on recliners
B. Salary of public relations manager for Cooper Furniture
C. Annual convention for furniture manufacturers; generally Cooper Furniture attends
D. Cost of lubricant used on the recliner assembly line
E. Freight costs of recliner frames shipped from Durham, NC to Potomac, MD
F. Electricity costs for recliner assembly line (single bill covers entire plant)
G. Wages paid to temporary assembly-line workers hired in periods of high recliner production (paid on hourly basis)
H. Annual fire-insurance policy cost for Potomac, MD plant
I. Wages (salary) paid to plant manager who oversees the assembly lines for both chair types

Answer 1

• Direct costs are a price that can be linked directly to the manufacturing of certain goods or services.
• The cost object can be connected directly to a service, product, or department.
• Direct expenses often vary from different production levels, such example, inventories, which implies that they vary.
• Direct costs vary in expenses directly related to variable manufacturing costs With a production unit With production unit, fixed costs do not fluctuate.

        $D:\ DIRECT\ COST\\\\V: \ VARIABLE\ COST\\\\I: \ INDIRECT \ COST\\\\F:\ FIXED\ COST$

Please find the complete solution in the attached file.

Learn more:

brainly.com/question/845815