Submitted by: Submitted by lz10991
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Words: 323
Pages: 2
Category: Other Topics
Date Submitted: 03/15/2013 08:07 AM
2-17 (15 min.) Direct, indirect, fixed and variable costs.
1. Yeast – direct, variable
Flour- direct, variable
Packaging materials –direct (or could be indirect if small and not traced to each unit), variable
Depreciation on ovens –indirect, fixed (unless “units of output” depreciation, which then would be variable)
Depreciation on mixing machines–indirect, fixed (unless “units of output” depreciation, which then would be variable)
Rent on factory building – indirect, fixed
Fire Insurance on factory building–indirect, fixed
Factory utilities – indirect, probably some variable and some fixed (e.g. electricity may be variable but heating costs may be fixed)
Finishing department hourly laborers – direct, variable (or fixed if the laborers are under a union contract)
Mixing department manager – indirect, fixed
Materials handlers –depends on how they are paid. If paid hourly and not under union contract, then indirect, variable. If salaried or under union contract then indirect, fixed
Custodian in factory –indirect, fixed
Night guard in factory –indirect, fixed
Machinist (running the mixing machine) –depends on how they are paid. If paid hourly and not under union contract, then indirect, variable. If salaried or under union contract then indirect, fixed
Machine maintenance personnel – indirect, probably fixed, if salaried, but may be variable if paid only for time worked and maintenance increases with increased production
Maintenance supplies – indirect, variable
Cleaning supplies – indirect, most likely fixed since the custodians probably do the same amount of cleaning every night
2. If the cost object is Mixing Department, then anything directly associated with the Mixing Department will be a direct cost. This will include:
• Depreciation on mixing machines
• Mixing Department manager
• Materials handlers (of the Mixing Department)
• Machinist (running the mixing machines)
• Machine Maintenance personnel (of the Mixing Department)
•...