below is a list of various costs of producing sweatshirts. Classify as variable,

Question

below is a list of various costs of producing sweatshirts. Classify as variable, fixed or mised cost

a.  Electricity costs of $0.025 per kilowatt-hour.
b.  Warehouse rent of $6,000 per month plus $0.50 per square foot of storage used.
c.  Thread.
d.  Lubricants used to oil machinery.
e.  Janitorial costs of $2,000 per month.
f.  Advertising costs of $10,000 per month.
g.  Sales salaries.
h.  Color dyes for producing different colors of sweatshirts.
i.  Salary of the production supervisor.
j.  Straight-line depreciation on sewing machines.
k.  Patterns for different designs. Patterns typically last many years before being replaced.
l.  Maintenance costs with sewing machine company. The cost is $2,000 per year plus $0.001 for each machine hour of use.
m.  Property taxes on factory, building, and equipment.
n.  Cotton and polyester cloth.
o.  Hourly wages of sewing machine operators.

Explanation / Answer

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Item Type Cost a. Electricity costs of $0.025 per kilowatt-hour. Variable b. Warehouse rent of $6,000 per month plus $0.50 per square foot of storage used. Mixed c. Thread. Variable d. Lubricants used to oil machinery. Variable e. Janitorial costs of $2,000 per month. Fixed f. Advertising costs of $10,000 per month. Fixed g. Sales salaries. Variable h. Color dyes for producing different colors of sweatshirts. Variable i. Salary of the production supervisor. Fixed j. Straight-line depreciation on sewing machines. Fixed k. Patterns for different designs. Patterns typically last many years before being replaced. Fixed l. Maintenance costs with sewing machine company. The cost is $2,000 per year plus $0.001 for each machine hour of use. Mixed m. Property taxes on factory, building, and equipment. Fixed n. Cotton and polyester cloth. Variable o. Hourly wages of sewing machine operators. Variable

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