Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 04 Aug 2017 My Price 7.00

Seymour Clothing Co

Classify costs

 

Seymour Clothing 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 orders

 

b.     Consulting fee of $200,000 paid to industry specialist for marketing advice

 

c.     Straight-line depreciation on sewing machines

 

d.     Salesperson’s salary, $10,000 plus 2% of the total sales

 

e.     Fabric

 

f.      Dye

 

g.     Thread

 

h.     Salary of designers

 

i.       Brass buttons

 

j.      Legal fees paid to attorneys in defense of the company in a patent infringement suit,

 

$50,000 plus $87 per  hour

 

k.     Insurance premiums on property, plant, and equipment, $70,000 per year plus $5 per

 

$30,000 of insured value over  $8,000,000

 

l.       Rental costs of warehouse, $5,000 per month plus $4 per square foot of storage used

 

m.   Supplies

 

n.     Leather for patches identifying the brand on individual pieces of apparel

 

o.     Rent on plant equipment, $50,000 per year

 

p.     Salary of production vice president

 

q.     Janitorial services, $2,200 per month

 

r.      Wages of machine operators

 

s.      Electricity costs of $0.10 per kilowatt-hour

 

t.      Property taxes on property, plant, and equipment

Instructions

Classify the preceding costs as either fixed, variable, or mixed. Use the following tabular head- ings and place an X in the appropriate column. Identify each cost by letter in the cost column.

 

 

 

Cost                                 Fixed Cost                                 Variable Cost                                      Mixed Cost

 

Answers

Maurice Tutor
(5)
Status NEW Posted 04 Aug 2017 08:08 PM My Price 7.00

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