Reference no: EM132621118

Problem A. Classify each cost as either variable or fixed with respect to the volume of goods or services produced and sold by the organization.

Problem B. Classify each cost as period or product cost.

Problem C. If the cost is a product cost, classify further as to whether it is direct material, direct labor, or factory overhead.

1. Cost of microchips in cellphones

2. Factory airconditioning costs

3. Maintenance costs of factory machinery

4. Training costs of sales personnel

5. Travel costs of the company's CEO

6. Salaries of factory workers

7. SSS premiums for employees in the human resource department

8. Costs of shipping products to customers

9. Depreciation of factory equipment

10. Supplies used in the factory

11. Cost of cloth in making Tshirts

12. Production manager's salary

13. Metal sheets used in car production.

14. Cost of electricity used in the showroom

15. Advertising costs

16. Philhealth premiums for bakers in a bakeshop

17. Rent for the administrative building.

18. Property tax for the plant.

19. Salaries of the security guards in the factory.

20. Depreciation of computers in the accounting department.

21. Insurance of factory building.

22. Nails used in furniture making.

23. Costs paid to Cleaners Inc. by SM mall.

24. Secretary's salary in a doctor's clinic.

25. Repairs cost on the delivery equipment.

26. Interest expense on notes payable.

27. External auditors' fee

28. Cost of disposing the factory's hazardous waste

29. Depreciation of an ECG machine in a hospital.

30. Salary of the principal in an elementary school.