Milestone One - Cost Classification
INSTRUCTIONS:
Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs.
The Fixed and Variable cost classifications have been provided for you.
Direct Direct
Item/Cost Material Labor Overhead Period Costs Fixed Variable
Salary - Collar maker x x
Salary - Leash maker x x
Salary - Harness maker x x
Salary - Receptionist x
High-tensile strength nylon webbing x x
Polyester/nylon ribbons x x
Buckles made of cast hardware x x
Depreciation on sewing machines x x
Rent x x
Utilities and insurance x x
Scissors, thread, and cording x x
Price tags x x
Office supplies x
Other business equipment x
Loan payment x x
Salary to self x x
ACC202 - MANAGERIAL ACCOUNTING
, Milestone One - Variable and Fixed Costs
Collars
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing $ 4.00 Collar maker's salary (monthly) $ 2,773.33
Polyester/nylon ribbons 3.00 Depreciation on sewing machines 55.00
Buckles made of cast hardware 2.00 Rent 250.00
Price tags 0.10 Utilities and insurance 200.00
Scissors, thread, and cording $ 400.00
Loan payment $ 183.33
Salary to self $ 166.67
Total Variable Costs per Collar $ 9.10 Total Fixed Costs $ 3,845.00
Leashes
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing 6.00 Leash maker's salary (monthly) 2773.33
Polyester/nylon ribbons 4.50 Depreciation on sewing machines 55.00
Buckles made of cast hardware 4.00 Rent 250.00
Price tags 0.10 Utilities and insurance 200.00
Scissors, thread, and cording 400.00
Loan payment 183.33
Salary to self 166.67
Total Variable Costs per Leash $ 14.60 Total Fixed Costs $ 4,028.33
Harnesses
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing 6.00 Harness maker's salary 2946.67
Polyester/nylon ribbons 4.50 Depreciation on sewing machines 55.00
Buckles made of cast hardware 4.00 Rent 250.00
Price tags 0.10 Utilities and insurance 200.00
Scissors, thread, and cording 400.00
Loan 183.33
Salary to self 166.67
Total Variable Costs per Harness $ 14.60 Total Fixed Costs $ 4,201.67
ACC202 - MANAGERIAL ACCOUNTING
INSTRUCTIONS:
Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs.
The Fixed and Variable cost classifications have been provided for you.
Direct Direct
Item/Cost Material Labor Overhead Period Costs Fixed Variable
Salary - Collar maker x x
Salary - Leash maker x x
Salary - Harness maker x x
Salary - Receptionist x
High-tensile strength nylon webbing x x
Polyester/nylon ribbons x x
Buckles made of cast hardware x x
Depreciation on sewing machines x x
Rent x x
Utilities and insurance x x
Scissors, thread, and cording x x
Price tags x x
Office supplies x
Other business equipment x
Loan payment x x
Salary to self x x
ACC202 - MANAGERIAL ACCOUNTING
, Milestone One - Variable and Fixed Costs
Collars
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing $ 4.00 Collar maker's salary (monthly) $ 2,773.33
Polyester/nylon ribbons 3.00 Depreciation on sewing machines 55.00
Buckles made of cast hardware 2.00 Rent 250.00
Price tags 0.10 Utilities and insurance 200.00
Scissors, thread, and cording $ 400.00
Loan payment $ 183.33
Salary to self $ 166.67
Total Variable Costs per Collar $ 9.10 Total Fixed Costs $ 3,845.00
Leashes
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing 6.00 Leash maker's salary (monthly) 2773.33
Polyester/nylon ribbons 4.50 Depreciation on sewing machines 55.00
Buckles made of cast hardware 4.00 Rent 250.00
Price tags 0.10 Utilities and insurance 200.00
Scissors, thread, and cording 400.00
Loan payment 183.33
Salary to self 166.67
Total Variable Costs per Leash $ 14.60 Total Fixed Costs $ 4,028.33
Harnesses
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing 6.00 Harness maker's salary 2946.67
Polyester/nylon ribbons 4.50 Depreciation on sewing machines 55.00
Buckles made of cast hardware 4.00 Rent 250.00
Price tags 0.10 Utilities and insurance 200.00
Scissors, thread, and cording 400.00
Loan 183.33
Salary to self 166.67
Total Variable Costs per Harness $ 14.60 Total Fixed Costs $ 4,201.67
ACC202 - MANAGERIAL ACCOUNTING
