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1. Complete the answer sheet below by placing an \"X\" under each heading that i

ID: 2408532 • Letter: 1

Question

1. Complete the answer sheet below by placing an "X" under each heading that identifies the cost involved. You should have two "Xs" for each cost (each row) – one identifying Cost Behavior (Variable or Fixed) and one indicating either Direct Materials, Direct Labor, Manufacturing Overhead, OR Period Cost. (5 Points)

           

Variable Cost

   Fixed Cost

Direct Materials

Direct Labor

Manufactu

ring Overhead

Period Cost

(Selling or

Administrative)

Materials costs traceable to cost objects

Production Supervisor’s Salary

Production line workers’ wages

Factory Building depreciation

Advertising costs

Variable Cost

   Fixed Cost

Direct Materials

Direct Labor

Manufactu

ring Overhead

Period Cost

(Selling or

Administrative)

Materials costs traceable to cost objects

Production Supervisor’s Salary

Production line workers’ wages

Factory Building depreciation

Advertising costs

Explanation / Answer

1. Materials costs traceable to cost objects - - - Variable Cost - - - Direct materials

2. Production supervisor's salary - - - Fixed cost - - - Period cost

3. Production line worker's wages - - - Variable Cost - - - Direct labor

4. Factory Building depreciation - - - Fixed cost - - - Manufacturing OH

5. Advertising costs - - - Fixed cost--- Period cost