Barbecue Blog

Classify the following cost items as direct (D) or indirect (I),
and fixed (F) or variable (V) with respect to the production
department (you will have two answers for each item—D
or I; F or V):
Cost Item D or I F or V
a. Salary of the production department
manager who oversees manufacturing
b. Salaries of founders Dan Dye and
Mark Beckloff
c. Cardboard trays used to package sets
of 12 specialty biscuits
d. Salary of the Web graphics designer
who prepares the online dogalog
illustrations and layout
e. Annual maintenance service agreement
for the conveyer belt
f. Wages paid to assembly line workers
who mix Scottie Biscotti ingredients
in batches
g. Utilities (water, electricity, waste) for
the entire Kansas City warehouse
h. Cost of flour, eggs, and honey-yogurt
icing for the Pup Tarts

a. IF
b. IF
c. IV
d. IF
e. IF
f. DV
g. IV or Mixed cost.
h. DV

Cheers…