Direct & indirect cost classification, fixed & Variable cost classification.
Whippany manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant, and runs two flexible assembly lines. Each assembly line can produce all three products.
Required:
a) Classify each of the following costs as either direct or indirect for each product
b) Classify each of the following costs as either fixed or variable with respect to the number of units produced of each product.
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Direct
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Indirect
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Fixed
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Variable
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Assembly line labor wages
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______
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______
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______
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______
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Plant manager's wages
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______
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______
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______
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______
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Depreciation on the assembly line equipment
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______
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______
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______
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______
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Component parts for the product
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______
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______
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______
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______
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Wages of security personnel for the factory
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______
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______
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______
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______
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