Problem 1-13A

Cost Item

1. Property taxes, factory ...............................

2. Boxes used for packaging detergent
produced by the company ........................
3. Salespersons commissions .........................
4. Supervisors salary, factory .........................
5. Depreciation, executive autos .....................
6. Wages of workers assembling computers.....
7. Insurance, finished goods warehouses.........
8. Lubricants for production equipment ...........
9. Advertising costs ........................................
10. Microchips used in producing calculators......
11. Shipping costs on merchandise sold.............
12. Magazine subscriptions, factory lunchroom ..
13. Thread in a garment factory .......................
14. Billing costs ...............................................
15. Executive life insurance ..............................
16. Ink used in textbook production ..................
17. Fringe benefits, assembly-line workers.........
18. Yarn used in sweater production .................
19. Wages of receptionist, executive offices.......

Variable or Selling
Fixed
Cost
F

V
V
F
F
V
F
V
F
V
V
F
V
V
F
V
V
V
F

Manufacturing
Administrative (Product) Cost
Cost
Direct Indirect
X

X
X
X
X
X
X
X
X
X
X
X
X
X*

* Could also be administrative cost (not enough information given).

** Could be indirect cost (note enough information given).

X
X
X**
X
X