Exercises: Identify Cost Bases For a major university, match each cost in the fo
ID: 2570439 • Letter: E
Question
Exercises: Identify Cost Bases
For a major university, match each cost in the following table with the activity base most appropriate to it. An activity base may be used more than once, or not used at all.
Cost: Activity Base:
Financial aid office salaries
Office supplies
Instructor salaries
Housing personnel wages
Student records office salaries
Admissions office salaries
Number of enrollment applications
Number of students
Student credit hours
Number of enrolled students and alumni
Number of financial aid applications
Number of students living on campus
2) Classify Costs (Pg. 163)
Following is a list of various costs incurred in producing toy robotic helicopters. With respect to the production and sale of these toy helicopters, classify each cost as either variable, fixed, or mixed.
Property taxes, $210,000 per year on factory building and equipment
Janitorial costs, $5,000 per month
Metal
Packaging
Salary of plant manager
Oil used in manufacturing equipment
Cost of labor for hourly workers
Plastic
Straight-line depreciation on the production equipment
Computer chip (purchased from a vendor)
Electricity costs, $0.10 per kilowatt-hour
Rent on warehouse, $12,000 per month plus $20 per square foot of storage used
Pension cost, $0.75 per employee hour on the job
Hourly wages of machine operators
Property insurance premiums, $2,000 per month plus $0.008 for each dollar of property over $1,000,000
Explanation / Answer
Activity Activity base Financial Aid office salaries Number of financial aid applications Office Supplies Number of students Instructor Salaries Students credit hours Housing personnel salaries Number of students living on campus Students records office salaries Number of students Admission office salaries Number of enrollment applications
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