1. The following cost items relate to the Brock Company. Classify each cost as a variable cost, a fixed cost, or a mixed cost by placing an X in the appropriate column. Each cost should be evaluated in terms of the volume of units of finished products produced. Also indicate with an X for each item if it is a product cost or a period cost.
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Variable, Fixed, or Mixed Cost? |
Product or period cost |
| Cost Item |
Variable |
Fixed |
Mixed |
Product |
Period |
| Executive Salarty |
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| Direct Labor |
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| Direct Materials |
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| Depreciation of Manufacturing Equipment |
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| Indirect Labor |
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| Factory Utilities |
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| Delivery expense |
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| Televsion advertising |
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| Indirect Materials |
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2. For each item shown below, classify it as a product cost or a period cost, by placing an X in the appropriate column. For each item that is a product cost, also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.
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Product or period cost? |
Direct or Inddirect Cost |
| Cost Item |
Product |
Period |
Direct |
Indirect |
| Administrative Salaries |
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| Direct Labor |
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| Advertising |
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| Property tax on the factory |
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| factory maintenance |
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| Direct Materials |
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| Depreciation on Factory Equipment |
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| Interest Expense |
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| Factory Supplies |
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