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    Cost classification and estimating costs

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    12.2
    Cost classifications. For each of the following costs, check the column(s) that most likely to apply:
    Cost Variable Fixed
    Raw materials
    Staples used to secure packed boxes of product
    Plants janitor's wages
    Order processing clerks' wages
    Advertising expenses
    Production workers' wages
    Production supervisiors' salaries
    Sales force commissions
    Maintenance supplies used
    President's salary
    Electricity cost
    Real estate taxes for:
    Factory
    Office building
    12.4
    Estimating costs based on behavior patterns: Tony estimates that the costs of insurance, license, and depreation to operate his car total $580 per month and that the gas, oil, and maintenance costs were 40 cents per mile. Tony also estimates that, on average, he drives his car 1,800 miles per month.
    Required:
    A. How much cost would Tony expect to incur during October if he drove the car 2,256 miles?
    B. Would it be meaningful for Tony to calculate an estimated average cost per mile for a typical 1,800-mile month? Explain your answer.

    12.6
    Understanding CVP relationships.
    Calculate the missing amounts for each of the following firms:
    Units selling variable costs contribution fixed operating
    Sold price per unit margin costs income (loss)
    Firm A 5,600 $12.00 ? $25,200 $20,300 ?
    Firm B 16,800 ? $22.20 ? 84,500 $43,180
    Firm C ? 7.30 3.20 28,700 ? (13,500)
    Firm D 14,160 ? 55.25 66,552 73,250 ?

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    https://brainmass.com/business/cost-volume-profit-analysis/cost-classification-and-estimating-costs-253114

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    12.2
    Cost classifications. For each of the following costs, check the column(s) that most likely to apply:
    Cost Variable Fixed
    Raw materials -Variable
    Staples used to secure packed boxes of product -Variable
    Plants janitor's wages -Fixed
    Order processing clerks' wages- Fixed
    Advertising expenses- Semi Fixed
    Production workers' wages- Variable
    Production supervisiors' salaries- Fixed
    Sales force commissions- Variable
    Maintenance supplies used- Fixed
    President's salary -Fixed
    Electricity cost- Semi Fixed
    Real estate taxes for:
    Factory- Fixed
    Office building -Fixed

    12.4
    Estimating costs based on behavior patterns: Tony estimates that the costs of insurance, license, and depreation to operate his car total $580 per month and that the gas, oil, and maintenance ...

    Solution Summary

    Response describes the Cost classification, estimating costs based on behavior petterns, understanding CVP relationships

    $2.19

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