161. A number of costs and measures of activity are listed below. Required: For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it. 1. Cost of direct materials used to make furniture; Units produced; Variable 2. Cost of vaccine used at a clinic; Vaccines administered; Variable 3. Cost of renting production equipment on a monthly basis at a snowboard manufacturer; Snowboards produced; Fixed 4. Shift manager's wages at a taco shop; Dollar sales; Fixed 5. Dental hygiene supplies at a dentist's office; Number of patients; Variable 6. Cost of heating a hardware store; Dollar sales; Fixed 7. Sales commissions at an auto dealer; Dollar sales; Variable 8. Cost of electricity for production equipment at a snowboard manufacturer; Snowboards produced; Variable 9. Cost of cement used to produce cinder blocks; Cinder blocks produced; Variable 10. Ferry captain's salary on a regularly scheduled passenger ferry; Number of passengers; Fixed AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Learning Objective: 02-03 Understand cost behavior patterns including variable costs; fixed costs; and mixed costs. Level: 1 Easy
161. A number of costs and measures of activity are listed below. Required: For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it. 1. Cost of direct materials used to make furniture; Units produced; Variable 2. Cost of vaccine used at a clinic; Vaccines administered; Variable 3. Cost of renting production equipment on a monthly basis at a snowboard manufacturer; Snowboards produced; Fixed 4. Shift manager's wages at a taco shop; Dollar sales; Fixed 5. Dental hygiene supplies at a dentist's office; Number of patients; Variable 6. Cost of heating a hardware store; Dollar sales; Fixed 7. Sales commissions at an auto dealer; Dollar sales; Variable 8. Cost of electricity for production equipment at a snowboard manufacturer; Snowboards produced; Variable 9. Cost of cement used to produce cinder blocks; Cinder blocks produced; Variable 10. Ferry captain's salary on a regularly scheduled passenger ferry; Number of passengers; Fixed AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Learning Objective: 02-03 Understand cost behavior patterns including variable costs; fixed costs; and mixed costs. Level: 1 Easy