Reference no: EM131077448
In respect of Abel furniture manufacturing facility, identify costs that would be classified as a) variable and b) fixed from the list below. Remember classification of costs as either variable or fixed is based on the definition or identification of a COST OBJECT.
Required:
1. Identify the Cost Object
2. Classify the costs listed below as either Variable or Fixed and give reasons for your choice.
1. Wood
2. Cloth or leather
3. Plastics
4. Metal
5. Glue, abrasives, grease,
6. Carpenter's wages
7. Janitor's wages
8. Cafeteria workers
9. Clerical staff wages
9. Utilities, including water, electricity, heating, cooling.
10. Property taxes
11. Depreciation of factory building
12. Depreciation of factory machinery
13. Depreciation of filing and other office furniture in the factory
14. Snow removal
15. Maintenance of parking lot
16. Security guard's wages
17. Landscaping for the factory property
18. Land on which the factory is built.
19. Maintenance of fish pond
20. Factory supervisor's salary.
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