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Peak Apparel Co manufactures a variety of clothing types

for #8902
Peak Apparel Co. manufactures a variety of clothing types for distribution to several major retail
chains. The following costs are incurred in the production and sale of blue jeans:a. Shipping
boxes used to ship ordersb. Consulting fee of $200,000 paid to industry specialist for marketing
advicec. Straight-line depreciation on sewing machinesd. Salesperson's salary, $10,000 plus
2% of the total salese. Fabricf. Dyeg. Threadh. Salary of designersi. Brass buttonsj. Legal fees
paid to attorneys in defense of the company in a patent infringement suit, $50,000 plus $87 per
hourk. Insurance premiums on property, plant, and equipment, $70,000 per year plus $5
per$30,000 of insured value over $8,000,000l. Rental costs of warehouse, $5,000 per month
plus $4 per square foot of storage usedm. Suppliesn. Leather for patches identifying the brand
on individual pieces of apparelo. Rent on plant equipment, $50,000 per yearp. Salary of
production vice presidentq. Janitorial services, $2,200 per monthr. Wages of machine
operatorss. Electricity costs of $0.10 per kilowatt-hourt. Property taxes on property, plant, and
equipmentInstructionsClassify the preceding costs as either fixed, variable, or mixed. Use the
following tabular headings and place an "X" in the appropriate column. Identify each cost by
letter in the cost column?Cost ................. Fixed Cost .................... Variable Cost .................
Mixed CostView Solution:
Peak Apparel Co manufactures a variety of clothing types for

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