. Sumitomo Cable manutactures UUl it sells directly to retail outlets through it
ID: 2337417 • Letter: #
Question
. Sumitomo Cable manutactures UUl it sells directly to retail outlets through its distribution channels 2-22 Direct, indirect, fixed, and variable costs minum and copper cables which manufacturing proce and . The ss for producing cables includes a process called wire draw in which the aluminum rough an extruder, where either a single or a double coating of plastic is applied. These copper rods are pulled through a series of synthetic dies, which gradually decrease in size. The wires is given to insulated wires are twisted into pairs by the Twisting and Stranding Department. The final shape the wires by the Jacketing and Packaging department after carrying out the process of quality control 1. Costs involved in the different processes are listed below. For each cost, indicate whether it is a direct variable, direct fixed, indirect variable, or indirect fixed cost, assuming that the "units of production of each kind of wire" is the cost object. Costs Aluminum and copper rods Insulating materials Wages for wire draw DV Depreciation on machineries Depreciation on factory building Insurance on factory building Consumable stores and dies IV. Wages for machine operators Power Quality control Repairs to machines Normal wastages and spoilages Store-keeper's salary LV Material testing Materials used by jacketing ahd packaging department Factory general utilities Fuel for factory generator Supervisors' salaries IV 2. If the cost object were the "Jacketing and Packaging department" instead, which c costs from require ment 1 would now be direct instead of indirect costs?Explanation / Answer
I am providing answers one bey one in order given
1)Direct,variable
2)Direct,variable
3)Direct,variable
4)indirect,fixed
5)indirect,fixed
6)indirect,fixed
7)indirect,variable
8)direct,variable
9)direct,variable
10)indirect,fixed
11)indirect,fixed
12)direct,variable
13)indirect ,fixed
14)direct,variable
15)indirect,variable
16)indirect,variable
17)indirect,variable
18)indirect,fixed
2)Here the costs directly associated with jacketing and packaging will be direct instead of indirect costs
1)Materials used by Jacketing and Packaging Department
2)Supervisor’s salaries for Jacketing and Packaging Department
3)Depreciation for machines used in Jacketing and Packaging Department
4)Repairs of machine (of the Jacketing and Packaging Department)
5)Consumable stores and dies (if directly attributable to the Jacketing and Packaging
Department)
6)Quality control (if the Jacketing and Packaging Department carries out the quality
control)
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