Answer:
A.     Particular                               Direct   Indirect  Variable Fixed
1      Wages of Assembly                Yes       No         Yes         No
2     Deprecation of plant &            No      Yes         No         Yes
        Machinery  
3      Glue & Thread                          No      No         Yes        No
4      Outbound Shipping Cost         No      Yes         No        Yes
5      Raw Material Handling Cost    Yes     No         Yes        No
6	Salary Of Public Relations        No     Yes         No        Yes
        manager
7      Production Run Setup Costs     Yes    No        Yes        No
8      Plant Utilities                              Yes    No        Yes        No
9      Electricity cost of retail stores   No    Yes        Yes        No
10     Research and development      No    Yes         No       Yes
         expense 
B. Product-Costing
i. Manufacturing Cost Per Machine Hour = Total Manufacturing overhead / Total Machine Hours
Manufacturing Cost Per Machine Hour = 359,520.00  / 21,400.00
Manufacturing Cost Per Machine Hour = 16.80
ii.  Particular                    Amount
Raw Material                     $6,240
Direct Labor Cost              <u>$9,165</u>
                                           $15,405
Manufacturing overhead  $13,104
(780 hours* $16.80)           <u>              </u>
Total Cost of 3900 Hats  <u>$28509</u>
Thus, the Cost of One hat = $28509 / 3900 hat = $7.31 per hat
iii. Total Hats made During the Month Of April    3,900
     Less: Closing Inventory                                     <u>1,050</u>  
     Sold During the month of April                       <u>2,850</u>
     Cost Of Hats Sold During the month of April  
     = 2,850 * $7.31 
     = $20,833.5
Cost of Closing Stock (1,050 hat)  = 1,050 hat * $7.31 = 7675.5