Reference no: EM131728780

The question I have pertains to the following information:

Joe Reynolds painted four houses during April 2013. For these jobs, he spent $2,400 on paint, $160 on mineral spirits, and $300 on brushes. He also bought two pairs of coveralls for $100 each; he wears coveralls only while he works. During the first week of April, Reynolds placed a $200 ad for his business in the classifieds. He hired an assistant for one of the painting jobs; the assistant was paid $25 per hour and worked 50 hours. Being a very methodical person, Reynolds kept detailed records of his mileage to and from each painting job. The average operating cost per mile for his van is $0.70. He found a $30 receipt in his van for a metropolitan map that he purchased in April. He uses the map as part of a contact file for referral work and for bids that he has made on potential jobs. He also had $30 in receipts for bridge tolls ($2 per trip) for a painting job he completed across the river. Near the end of April, Reynolds decided to go camping, and he turned down a job on which he had bid $6,000. He called the homeowner long distance (at a cost of $2.20) to explain his reasons for declining the job.

Using the following headings, indicate how to classify each of the April costs incurred by Reynolds. Assume that the cost object is a house-painting job.

Type of Cost Variable Fixed Direct Indirect Period Product

Okay, so I feel like I have a pretty good grasp on all of the classifications that are related to jobs that were completed. My question to you is, do the costs for the long distance call and the rejected bid factor into these costs? I'm pretty sure the call is a fixed, indirect period cost, but I am uncertain if that is correct. If the lost income on the job that was declined needs to be classified, I don't know how to fit it into this table.