The Following Is a List of Various Costs of Producing

question 67

Short Answer

The following is a list of various costs of producing T-shirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.
(a) Ink used for screen printing
(b) Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used
(c) Thread
(d) Electricity costs of $0.038 per kilowatt-hour
(e) Janitorial costs of $4,000 per month
(f) Advertising costs of $12,000 per month
(g) Accounting salaries
(h) Color dyes for producing different colors of T-shirts
(i) Salary of the production supervisor
(j) Straight-line depreciation on sewing machines
(k) Salaries of internal pattern designers
(l) Hourly wages of sewing machine operators
(m) Property taxes on factory, building, and equipment
(n) Cotton and polyester cloth
(o) Maintenance costs with sewing machine company (the cost is $2,000 per year plus $0.001 for each machine hour of use.)

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Definitions:

Profit-Sharing Plans

A compensation program in which employees receive a share of the company's profits in addition to their regular salary, usually based on the company's earnings over a specific period.

Organization's Performance

A measure of how effectively and efficiently an organization meets its goals and objectives.

Financial Difficulties

A situation where individuals or entities face challenges in managing their money, often leading to debt or bankruptcy.

Narrow View

A limited perspective that does not consider all aspects or possibilities, often focusing tightly on a single point or idea.