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Cost Types in Manufacturing

Total questions: 16

Worksheet time: 28mins

Name
Class
Date
1.

A company manufactures wooden furniture. The cost of wood used in the production of one table is $30. What type of cost is this?

a)

Direct Cost

b)

Indirect Cost

c)

Fixed Cost

d)

Variable Cost

2.

A factory spends $4,000 per month on facility rent, regardless of how many products are made. What type of cost is this?

a)

Direct Cost

b)

Indirect Cost

c)

Fixed Cost

d)

Variable Cost

3.

A company pays $3,000 per month for utilities, and the cost increases with higher production levels. What type of cost is this?

a)

Direct Cost

b)

Indirect Cost

c)

Fixed Cost

d)

Variable Cost

4.

The salary of a supervisor in the manufacturing department is $5,000 per month. This cost is an example of:

a)

Direct Cost

b)

Indirect Cost

c)

Fixed Cost

d)

Variable Cost

5.

The factory spends $15 per unit on labor costs for assembling the products. What type of cost is this?

a)

Direct Cost

b)

Indirect Cost

c)

Fixed Cost

d)

Variable Cost

6.

A company spends $6,000 annually on insurance for its equipment, regardless of how many products are produced. What type of cost is this?

a)

Direct Cost

b)

Indirect Cost

c)

Fixed Cost

d)

Variable Cost

7.

Calculate the total cost for producing 600 units of a product, given the following costs: Direct material cost: $25 per unit Direct labor cost: $15 per unit Fixed overhead: $4,000 Variable overhead: $5 per unit

4 lines
8.

A factory spends $2 per unit for packaging materials, and it costs $6,000 to lease the packaging equipment each month. What type of cost is the $2 per unit spent on packaging materials?

a)

Direct Cost

b)

Indirect Cost

c)

Fixed Cost

d)

Variable Cost

9.

The cost of security services at the factory is $500 per month, regardless of production levels. What type of cost is this?

a)

Direct Cost

b)

Indirect Cost

c)

Fixed Cost

d)

Variable Cost

10.

A company produces 800 units of a product. The total fixed cost is $10,000, and the variable cost per unit is $12. What is the total cost?

4 lines
11.

A company manufactures 1,000 units of a product. The fixed cost is $8,000, and the variable cost per unit is $10. What is the total cost of production?

4 lines
12.

A company has fixed costs of $5,000 per month and variable costs of $15 per unit. If the company produces 600 units, what is the total cost?

4 lines
13.

A manufacturer produces 500 units of a product. The fixed costs are $12,000, and the variable costs are $8 per unit. What is the total cost?

4 lines
14.

A business incurs fixed costs of $20,000 and variable costs of $25 per unit. If the business produces 400 units, what is the total cost?

4 lines
15.

A manufacturer produces 500 units of a product. The fixed costs are $12,000, and the variable costs are $8 per unit. What is the total cost?

4 lines
16.

A business incurs fixed costs of $20,000 and variable costs of $25 per unit. If the business produces 400 units, what is the total cost?

4 lines