Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity andthe associated activity driver that allow you to define the cost behavior. For example, assume thatthe resource input is “cloth in a shirt.” The activity would be “sewing shirts,” the cost behavior“variable,” and the activity driver “units produced.” Prepare your answers in the following format: Activity Cost Behavior Activity DriverSewing shirts Variable Units produced a. Flu vaccineb. Salaries, equipment, and materials used for moving materials in a factoryc. Forms used to file insurance claimsd. Salaries, forms, and postage associated with purchasinge. Printing and postage for advertising circularsf. Equipment, labor, and parts used to repair and maintain production equipmentg. Power to operate sewing machines in a clothing factoryh. Wooden cabinets enclosing audio speakers i. Advertisingj. Sales commissionsk. Fuel for a delivery vanl. Depreciation on a warehousem. Depreciation on a forklift used to move partially completed goodsn. X-ray film used in the radiology department of a hospitalo. Rental car provided for a client

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 9E: Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity...
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Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity and
the associated activity driver that allow you to define the cost behavior. For example, assume that
the resource input is “cloth in a shirt.” The activity would be “sewing shirts,” the cost behavior
“variable,” and the activity driver “units produced.” Prepare your answers in the following format:

Activity Cost Behavior Activity Driver
Sewing shirts Variable Units produced

a. Flu vaccine
b. Salaries, equipment, and materials used for moving materials in a factory
c. Forms used to file insurance claims
d. Salaries, forms, and postage associated with purchasing
e. Printing and postage for advertising circulars
f. Equipment, labor, and parts used to repair and maintain production equipment
g. Power to operate sewing machines in a clothing factory
h. Wooden cabinets enclosing audio speakers

i. Advertising
j. Sales commissions
k. Fuel for a delivery van
l. Depreciation on a warehouse
m. Depreciation on a forklift used to move partially completed goods
n. X-ray film used in the radiology department of a hospital
o. Rental car provided for a client

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