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Identify each of preceding costs as variable or fixed cost

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Our friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie's product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow:

Factory rent $3,200
Company advertising 1,000
Wages paid to assembly workers 30,000
Depreciation for salespersons' vehicles 2,000
Screws 500
Utilities for factory 900
Assembly supervisor's salary 3,500
Sandpaper 150
President's salary 6,000
Plastic tubing 4,200
Paint 250
Sales commissions 1,200
Factory insurance 1,000
Depreciation on cutting machines 2,000
Wages paid to painters 7,500

Assume that Suzie Whitson has decided to begin production of her outdoor children's toy.

Required:

Question 1. Identify each of the preceding costs as either a product or a period cost. If the cost is a product cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH).

Question 2. Identify each of the preceding costs as variable or fixed cost.

Reference no: EM132704969

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