Anchor Calendar Company Manufactures Wall and Desktop Calendars for Business

question 43

Essay

Anchor Calendar Company manufactures wall and desktop calendars for business use.The company expects production of 20,000 units this year.Various costs and items associated with calendar production are described below:
$\begin{array}{|l|l|c|c|c|}\hline \text { Item } & \text { Direct } &\text { Indirect} & \text { Fixed } & \text { Variable }\\\hline \text { Purchase cost of paper } & \\\hline \text { Assembly labor costs } & \\\hline \text { Supervisory labor costs } & \\\hline \text { Depreciation on paper cutting machines } & \\\hline \text { Depreciation on factory building } & \\\hline \text { Maintenance on machine (performed between } & \\\text { batches of products) } & \\\hline \text { Materials used in small amount, such as glue } & \\\hline \text { Factory rental costs } & \\\hline\end{array}$ Required:
Assume that management is interested in determining the average cost per calendar.For each item in the table,place a check mark or X in every column that applies.When labeling costs as fixed or variable,select your response on the basis of whether the total cost of that item will change when changes occur in volume of calendars produced.

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Definitions:

President Chester A. Arthur

The 21st President of the United States, serving from 1881 to 1885, known for his efforts in civil service reform and the Pendleton Civil Service Reform Act.

Tariff Rates

Taxes imposed on imported or sometimes exported goods, with the aim of protecting domestic industries, generating revenue, or regulating trade.

Pendleton Civil Service Act

A federal law passed in 1883 that mandated positions within the federal government be awarded on the basis of merit instead of political affiliation, significantly curbing the spoils system.

President Rutherford B. Hayes

The 19th President of the United States, serving from 1877 to 1881, known for ending the Reconstruction era through the Compromise of 1877.