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Peyton Products Makes Paddle Boards, and Would Like to Identify

Question 67

Matching

Peyton Products makes paddle boards, and would like to identify the behavior of certain costs with respect to each paddle board produced and sold.
Required:
select each of the following costs as variable (A), fixed (B), or mixed (C).

Premises:

Responses:

Salary of chief financial officer (CFO).

mixed

Invoices sent to customers.

variable

Straight-line depreciation on factory machinery.

fixed

Lease payments of $30,000 for factory equipment plus 5 cents for each keyboard completed.

Hourly wages for assembly workers.

Parts required for production.

Company cell phones with flat fee of $80 plus 5 cents per minute.

Salary of production manager.

Salaries and commissions of salespeople.

Premises:

Salary of chief financial officer (CFO).

Invoices sent to customers.

Straight-line depreciation on factory machinery.

Lease payments of $30,000 for factory equipment plus 5 cents for each keyboard completed.

Hourly wages for assembly workers.

Parts required for production.

Company cell phones with flat fee of $80 plus 5 cents per minute.

Salary of production manager.

Salaries and commissions of salespeople.

Responses:

mixed

variable

fixed

Correct Answer:

Premises:

Responses:

Salary of chief financial officer (CFO).

Invoices sent to customers.

Straight-line depreciation on factory machinery.

Lease payments of $30,000 for factory equipment plus 5 cents for each keyboard completed.

Hourly wages for assembly workers.

Parts required for production.

Company cell phones with flat fee of $80 plus 5 cents per minute.

Salary of production manager.

Salaries and commissions of salespeople.