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    tsmith86's Avatar
    tsmith86 Posts: 22, Reputation: 1
    New Member
     
    #1

    Oct 13, 2005, 11:11 AM
    fixed costs vs. variable costs
    Can someone please check my answers.
    -Classify each of the following items of factory overhead as either a fixed or a variable cost. (Include any costs you consider to be semivariable within the variable category)
    a. Indirect labor- fixed costs could be variable under certain circumstances
    b. Indirect materials- variable costs
    c. Insurance on building- fixed costs
    d. Overtime premium pay- variable costs
    e. Depreciation on building (straight-line)- fixed costs
    f. Polishing compounds- variable costs
    g. Depreciation on machinary (based on machine hours used)- variable costs
    h. Employer's payroll taxes- variable costs
    I. Property taxes- fixed costs
    j. Machine lubricants- variable costs
    k. Employees' hospital insurance (paid by employer)- fixed costs
    l. Labor for machine repairs- variable costs
    m. Vacation pay- variable costs
    n. Patent amortization- fixed costs
    o. Janitor's wages- fixed costs
    p. Rent- fixed costs
    q. Small tools- variable costs
    r. Plant manager's salary- fixed costs
    s. Factory electricity- fixed costs
    t. Product inspector's wages- fixed costs
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
     
    #2

    Jan 30, 2012, 03:57 PM
    Your answers look correct. Number A could be variable and number Q could be fixed as not enough info is given. If small tools are product costs or you are replacing tools used then the costs would be variable. If you use a set number of tools during each period the costs would be fixed.

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