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Question
HiFi Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units.
| Cost by Behavior | Cost by Function | ||||
| Variable | Fixed | Product | Period | ||
| Plastic for speaker casings | $150,000 | ||||
| Assembly labor | 200,000 | ||||
| Factory property taxes | 22,000 | ||||
| Accounting staff salaries | 75,000 | ||||
| Sales office rent | 10,000 | ||||
| Sales managers salary | 60,000 | ||||
| Depreciation on factory equipment | 23,000 | ||||
| Sales commissions | 36,000 | ||||
Classify each cost as either fixed or variable, and either a product or a period cost.
Answer
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