Question

Family Furniture Corporation incurred the following costs. Identify the costs as variable, fixed, or mixed. 1. Wood used in the production of furniture. 2. Fuel used in delivery trucks. 3. Straight-line depreciation on factory building. 4. Screws used in the production of furniture. 5. Sales staff salaries. 6. Sales commissions. 7. Property taxes. 8. Insurance on buildings. 9. Hourly wages of furniture craftsmen. 10. Salaries of factory supervisors. 11. Utilities expense. 12. Telephone bill.

Answer 1

Answer: Please refer to Explanation

Step-by-step explanation:

1. Wood used in the production of furniture. VARIABLE COST

2. Fuel used in delivery trucks. VARIABLE COST

3. Straight-line depreciation on factory building. FIXED COST

4. Screws used in the production of furniture. VARIABLE COST

5. Sales staff salaries. FIXED COST

6. Sales commissions. VARIABLE COST

7. Property taxes. FIXED COST

8. Insurance on buildings. FIXED COST

9. Hourly wages of furniture craftsmen. VARIABLE COST

10. Salaries of factory supervisors. FIXED COST

11. Utilities expense. MIXED COST

12. Telephone bill. MIXED COST