Classify each cost as a variable cost

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1. The following cost items relate to the Brock Company. Classify each cost as a variable cost, a fixed cost, or a mixed cost by placing an X in the appropriate column. Each cost should be evaluated in terms of the volume of units of finished products produced. Also indicate with an X for each item if it is a product cost or a period cost.


Variable, Fixed, or Mixed Cost? Product or period cost
Cost Item Variable Fixed Mixed Product Period
Executive Salarty




Direct Labor




Direct Materials




Depreciation of Manufacturing Equipment




Indirect Labor




Factory Utilities




Delivery expense




Televsion advertising




Indirect Materials




2. For each item shown below, classify it as a product cost or a period cost, by placing an X in the appropriate column. For each item that is a product cost, also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.


Product or period cost? Direct or Inddirect Cost
Cost Item Product Period Direct Indirect
Administrative Salaries



Direct Labor



Advertising



Property tax on the factory



factory maintenance



Direct Materials



Depreciation on Factory Equipment



Interest Expense



Factory Supplies



 

Reference no: EM13508786

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