factory supervisor salary fixed or variable

Variable Factory Overhead. Fixed Period/Administrtive 13. If the factory manager is a salaried employee that means he gets paid a fixed agreed amount every check regardless of hours worked. Applying the breakeven formula. Salaries are classified as fixed costs when they do not vary with the number of hours a person works, or with the output rolling off your production line. Based on variability, the costs has been classified into three categories, they are fixed, variable and semi variable. If the supervisor works an additional 2 hours overtime, at time and a half, total pay is $645.00, it is a semi-variable cost. C.) A Standard Cost. Insurance premium on building 6. Variable Cost, Semi-Variable and Fixed Cost Fixed Cost. Supervisor’s salary, factory. If The Hourly Wage Rate Actually Paid During January Is Higher Than The Standard Rate, The Result Is: A.) B.       per-minute usage fees          -           A. So, there are two ways of calculating total costs. If any member of the Board of Managing Directors utilizes this right to terminate their contract and the Supervisory Board accepts their resignation from the Board of Managing Directors or if, in connection with the change of control, their membership of the Board ends for other (i.e. X 5. Fixed costs include the rent or mortgage payments you pay for your factory and office building, the property taxes and utilities expenses. Executive life insurance. A step cost is constant for a given amount of output and then increased in a fixed amount at a higher output level. They earn the same amount regardless of how your business is doing. If your company has a supervisor overseeing the manufacturing of a product, her salary stays the same regardless of how much of the product the company makes and sells, so her salary is a fixed, direct cost. The salaries of your plant managers, foremen, supervisors and quality control inspectors are indirect labor. If a business employs a usage-based depreciation methodology, then depreciation will be incurred in a pattern that is more consistent with a variable cost. 12. This will be more common since most managerial level positions are salaried. Factory supervisor’s salary          -           A. Sales commissions. If two supervisors can manage 20 workers and another 5 workers are recruited, then a third supervisor is to be recruited who will be able to manage further 5 workers. X . X 4. ; indirect labor such as salary of the supervisor; and factory expenses such as rent of the factory space, depreciation of factory equipment, utilities expense of the factory, factory supplies, etc. The answer should be the same and not different. The total fixed cost remains the same. A Supervisor's Salary Is An Example Of: A.) Leather covers for footballs 2. The average salary for a Factory Supervisor is $47,968. X 7. Wages of assembly workers 4. Now, the supervisor gets $15/hour. So, a full-time salaried manager earning $40,000 per year is still required to manage and is contractually entitled to receive his $40,000 salary, regardless of how many widgets you're manufacturing. Fixed costs vs variable costs vs semi-variable costs. Any employees who work on salary count as a fixed cost. 7. Start studying Variable vs. Wood used for making tables 2. The answer should be the same and not different. Variable costs increase and and decrease directly in proportion to the number of products manufactured. Semi-variable costs consist of both fixed and variable costs. Direct Labor. A cost that doesn’t change in a short term, irrespective of how the volume of production or the sales may change is the fixed cost. Examples: property taxes, salaries, insurance and depreciation. At 1 hour, the total is $15.00, at 40 hours $600. Three examples of fixed manufacturing overhead costs include 1) depreciation of the manufacturing equipment, 2) the property tax on the factory building, and 3) the salaries of the factory supervisors. B. 0 votes. Fixed factory costs do not change based on how many products you manufacture. Understanding how to graph these costs can help you analyze input and output. This will be more common since most managerial level positions are salaried. Sand used in manufacturing concrete. Start studying Cost Accounting Chapter 2. d) Salaries for the factory custodial staff is fixed cost as salary has to be paid even if there is no production - it is fixed cost. X 6. This cost is usually a constant cost for a basic operation of businesses or in other words it is a basic operating cost of a business which is crucial and can’t be avoided. Fixed Period/Administrtive 13. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. 2.Advertising by a dental office. Auditor is an accounting professional hired, to review the financial statements prepared b... Q: The Fraser Paper Company produces large rolls of white paper weighing 1,000 kilograms for wholesaler... A: 1 package weighs 2 kgs, So, 50,00,000 kgs shall make 25,00,000 packages. If The Hourly Wage Rate Actually Paid During January Is Higher Than The Standard Rate, The Result Is: A.) B. I need to classify each item first, as either variable or fixed with respect to the number of units produced and sold; and second, as either a selling and administrative cost or a product cost. c. Wood used in furniture production. 2.) Comparing Fixed Costs to Variable Costs. C.) A Standard Cost. Hourly wafes          -           A. All Variable costs + All Fixed Costs = Total Costs. Each of these costs comes in large dollar amounts (they do not occur at a rate of say $1.00 per unit) and none is directly traceable to the products manufactured. Insurance premiums and the depreciation taken on the factory and office buildings and production equipment are fixed costs. While financial accounting is required by law and mainly performed to benefit external users, managerial accounting is not required by law and is done to provide useful information to people within an organization, mainly management, to help them make better internal business decisions. Fixed Product/MOH 12. X 2. Variable Product/Direct material 11. Indirect costs affect the entire company, not just one product. Revised Summer 2015 Page 5 of 15 Example #4 Determine whether the following costs would be recorded in the period of sale or period when the cost was incurred. X 7. Variable Factory Overhead. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset.Depreciation cannot be considered a variable cost, since it does not vary with activity volume.However, there is an exception. Variable costs increase and and decrease directly in proportion to the number of products manufactured. Indirect materials, indirect costs and utilities are considered variable costs. Fixed Period/Selling 16. (Units are not normally boxed.) Variable Fixed 1. Mixed costs contain both fixed and variable elements. Although it is a direct cost, it does not discount the fact that it is a fixed... See full answer below. Fixed costs vs variable costs vs semi-variable costs. X 2. So, a full-time salaried manager earning $40,000 per year is still required to manage and is contractually entitled to receive his $40,000 salary, regardless of how many widgets you're manufacturing. the salary of the factory supervisor is a good example of a ___ cost. B.       Pay-per view          -           A. How much does a Factory Supervisor make? 11. The salary of the factory supervisor is a fixed cost. Examples of fixed costs include rent, depreciation, patent amortization, property insurance, property taxes, and fixed salaries of production executives and indirect labor. The wages of the receptionist in the administrative offices. Payroll is the aggregate expenditure on w... Q: Hunter Co. is a calendar-year retailer. For example, in a manufacturing company, one supervisor is required at a salary of Rs 10,000 p.m. for every 50 workers. Wages of the accounting department workers 3. Factory overhead includes indirect materials such as cost of nails, thread, glue, etc. Variable  B. fix. Now let us look at those dual cost classifications: Table of Contents . Package is sold at $4 per p... Q: Record the adjusting entry for Bad Debt Expense under the following independent scenarios (assume ne... A: Solution 1. c. a semi-variable cost. Variable Period/Selling 14. 3.Apples processed and canned by Del Monte. Variable Product/Direct labor 15. a. Semi-variable costs. FLOUNDER INC.COMPARATIVE BA... A: A cash flow statement is a statement that shows all the inflows and outflows of the cash & cash ... Q: Which of the following statements is true with regard to the gross profit ratio? Manufacturing costs are also known as factory costs or production costs. Per unit fixed cost is variable. Bad debt expense ………. Generally speaking, COGS will always have a fixed and variable component. A clear comparison can be seen in the following table: Fixed Product/MOH 12. However, the product's indirect manufacturing costs are likely a combination of fixed costs and variable costs. Part of the cost stays consistent (often a base cost) and part fluctuates with business activity. Is the production manager's salary is an example of variable cost? Create your account. Employees who work per hour, and whose hours change according to business needs, are a variable expense. d. a standard cost. Beginning inventory, Apr... A: FIFO means first in first out which means that inventory which is recieved first , will be sold firs... Q: Comparative balance sheet accounts of Flounder Inc. are presented below. If a business employs a usage-based depreciation methodology, then depreciation will be incurred in a pattern that is more consistent with a variable cost. Are they paid the same salary if they work 10 hours or 80 hours? B.) If you must have a minimum number … D.) Fixed Manufacturing Costs. Supervisor’s salary, factory. Total fixed cost is that cost which does not change in proportion to the change in output like monthly salary cost of a supervisor. 10. *Response times vary by subject and question complexity. Supervisor's monthly salary $4,500 $4,500 $4,500 Assembly line workers' per hour wage rate $30 $30 $30 Total materials cost $800 $4,000 $8,000 Depreciation on factory equipment $5,000 $5,000 $5,000 Total delivery costs $1,400 $1,800 $2,250 What will be an ideal response. Mixed Costs. Step costs are also known as step-fixed costs or step-variable costs. For example, manufacturing businesses generally include direct costs (e.g. Piecework labor, where pay is based on the number of items made, is variable – so are sales commissions. Examples: shipping costs, materials, supplies, advertising and training. The amount is fixed. Classification of variable and fixed costs Classify each of the following as a variable or fixed cost with respect to a unit of production:. Salaries are classified as fixed costs when they do not vary with the number of hours a person works, or with the output rolling off your production line. Variable Product/Direct material 11. 1. Choose the statement that is incorrect. Revised Summer 2015 Page 5 of 15 Example #4 Determine whether the following costs would be recorded in the period of sale or period when the cost was incurred. Company president’s salary          -           A. If a) above is overhead cost is to be apportioned.It is not varying proportionately. X 6. 1. plant, and factory supervisor salaries are examples of (variable costs, fixed costs or mixed costs) ..... 4. All rights reserved. The following are some examples of factory overhead costs: Journal entry: Solution for or each cost, identify it as: Variable or Fixed - A. Bad debt expense = 2% * $300,000 = $6,000 A Favorable Labor Rate Variance. A Favorable Labor Rate Variance. For instance, if the managers within the manufacturing facility but not on the assembly line are paid salaries which total $20,000 per month, this cost is a fixed indirect product cost. Fringe benefits, assembly-line workers. Advertising costs. Now, the critical point is, the total costs would always be the same, whether we calculate by the first formula or by second formula. B. © copyright 2003-2020 Study.com. Indirect Cost of Production Indirect costs … Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials.Factory overhead is normally aggregated into cost pools and allocated to units produced during the period. b. a fixed cost. Packing supplies for shipping products overseas. Fixed costs stay the same no matter how many sales you make, while your total variable cost increases with sales volume. B.) Rent, factory and building depreciation, property insurance and indirect labor salaries are fixed costs. An Unfavorable Labor Rate Variance. So, there are two ways of calculating total costs. Q: Butsoy Corporation manufactures two products - Ayko and Ayza. Fixed costs stay the same no matter how many sales you make, while your total variable cost increases with sales volume. The salary of the factory supervisor is a good example of: a. a variable cost. Utilities to operate sales offices 5. Steel used in automobile production. with production, hence it is not variable cost. Variable Fixed 1. This preview shows page 11 - 19 out of 32 pages.. Sales commissions. X 3. Manufacturing costs include direct materials, direct labor, and factory overhead.Direct materials - cost of items that form an integral part of the finished product. Salary of the factory supervisor 4. Examples include commission payments and overage charges. Salaries of production supervisors. Direct Labor. Depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset.Depreciation cannot be considered a variable cost, since it does not vary with activity volume.However, there is an exception. Factory depreciation expense Fixed Direct labor Variable Production supervisor’s salary Fixed Computer rental expense Fixed Maintenance supplies used Variable Cost Behavior Fixed Direct labor Variable Production supervisor’s salary Fixed Computer rental expense Fixed Maintenance supplies used Variable Cost Behavior Total costs mean all and every kind of expenses which a company may incur. Become a Study.com member to unlock this All other trademarks and copyrights are the property of their respective owners. Inventory is to be reported after making adjustments. Classify each cost as either variable (V) or fixed (F) 1. Fixed Period/Administrative 9. Its year-end physical count of inventory on hand did not co... A: Step 1 Commissions are a semi-variable labor costs. Sciences, Culinary Arts and Personal Total costs mean all and every kind of expenses which a company may incur. (If the item is a product cost, it should also be classified as either direct or indirect.) And, today's employees are also looking for more than just a base salary and benefits package when they decide to come on board and work for an employer. An increase in cos... A: Gross profit is an excess amount of revenue over its cost of goods sold.it measures profitability an... Q: What are the three categories of auditor responses to fraud risks? Wood used for making tables 2. Factory overhead as a type of manufacturing costs Factory overhead is any manufacturing cost that is not direct materials or direct labor. Advertising costs. The Lakeshore Hotel's guest-days of occupancy and... On December 31, the end of the first year of... Royal Lawncare Company produces and sells two... Dunn Company incurred the following costs while... Kamal Fatehl production manager of Kennesaw... Hall Company manufactures a single product. Also included in your indirect labor costs are the salaries for security guards, janitors, fork lift drivers and machine repairmen. The budget committee gathered the foll... A: Budgeting:-Budget is the future estimated plan on which the company's management works. B.) 2.3. Semi-variable costs. Are they paid overtime when working over 40 hours? Fixed costs include indirect costs and manufacturing overhead costs. answer! Find answers to questions asked by student like you, or each cost, identify it as:  Variable  or Fixed            -           A. Are they paid the same salary when they are sick and off work? Depreciation on chairs and tables in the factory lunchroom. B.       taxes A. X 4. Median response time is 34 minutes and may be longer for new subjects. Your sales volume determines the ebb and flow of these expenses. In economics, production costs involve a number of costs that include both fixed and variable costs. Variable Period/Selling 14. Manufacturing costs refer to those that are spent to transform materials into finished goods. All Variable costs + All Fixed Costs = Total Costs. If the factory manager is a salaried employee that means he gets paid a fixed agreed amount every check regardless of hours worked. Commissions are a semi-variable labor costs. Fixed costs are costs that do not change … B. If the factory manager is an hourly employee than he gets paid according to the number of hours worked. in the COGS line item. Visit PayScale to research factory supervisor salaries by city, experience, skill, employer and more. b. Heat, water, and power consumed in the factory. Lace to hold footballs together .5. Classify these costs as fixed or variable costs, and as product costs or period costs. The total pay varies proportionately, it is a variable cost. If so, it is a fixed cost. If it is still $1,000, the same, their salary is fixed. Solution for or each cost, identify it as: Variable or Fixed - A. X . d. Salaries for factory custodial staff. 1 Direct and Variable Costs 2 Direct and Fixed Costs 3 Indirect and Variable Costs 4 Indirect and Fixed Costs Direct and Variable Costs. They want the opportunity to earn variable compensation to bolster their base salary. Cost accountants can account for indirect labor costs through allocation or through activity-based costing. His wage would be a variable cost. Materials used for boxing products for shipment overseas. Taken together, fixed and variable costs are the total cost of keeping your business running and making sales. Examples include commission payments and overage charges. irrespective of the number of output produced.Variable costs vary with the number of output produced.Semi-variable is the type of costs, which have the characteristics of both fixed costs and variable costs. Wages of the accounting department workers 3. B.       eggs at a bakery          -           A. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Part of the cost stays consistent (often a base cost) and part fluctuates with business activity. A supervisor's salary typically is considered a fixed cost. Rent, factory and building depreciation, property insurance and indirect labor salaries are fixed costs. Fixed factory costs do not change based on how many products you manufacture. Classify each cost as being either variable or fixed with respect to the number of units produced and sold. A: Auditor: Factory supervisor’s salary -… Cost Item Predicting Cost Behavior Preparing Financial Statements 1.Hamburger buns in a Wendy’s restaurant. If you had no sales revenue, you’d have no variable expenses and your semifixed expenses would be lower. The salary of the factory supervisor is a fixed cost. If your company has a supervisor overseeing the manufacturing of a product, her salary stays the same regardless of how much of the product the company makes and sells, so her salary is a fixed, direct cost. B.) The amount is fixed. Indirect Cost of Production . Workers’ compensation insurance for factory employees. Factory supervisors’ salaries. Fixed Cost remains constant does not mean that they are not going to change in future, but they tend to be fixed in the short run. 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They refer to the major parts or ingredients. An Unfavorable Labor Rate Variance. Fixed Costs. The salary of the factory supervisor is a good example of: Total fixed costs remain constant over the relevant range of volume, but unit fixed costs vary indirectly with volume. Services, Fixed Costs: Definition, Formula & Examples, Working Scholars® Bringing Tuition-Free College to the Community. Certain expenses rise in steps, i.e., it remains fixed up to a certain level, and then jumps and remains fixed up to the next level, e.g., supervisory salary. Dr.    $3... Q: 2. accounting-and-taxation; 0 Answers. A. variable B. fixed C. semi-variable D. standard Factory supervisor salary Variable/semi-fixed expenses. Also classify each cost as either a period or a product cost. Machinery depreciation (straight-line) 3. Indirect materials, indirect costs and utilities are considered variable costs. ____ 5. X 5. Factory supervisor’s salary -… answered Sep 24, 2015 by Flying_Bean . Businesses p... Q: Morgenstern Ltd. has the following units and costs for the month of April. Fixed costs are much less controllable than variable costs. materials and direct labor) and an allocation for overhead (e.g. The average Factory Supervisor salary is $49,235 as of October 28, 2020, but the salary range typically falls between $43,474 and $56,010.Salary ranges can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession. Problem Listed below are product costs for production of footballs. Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*. Fixed overhead costs are constant and do not vary as a function of productive output, including items like rent or a mortgage and fixed salaries of employees. Best answer. Factory overhead can have variable or fixed nature, depending on whether overhead changes in direct proportion with production volumes. Fixed costs, as its name suggests, is fixed in total i.e. Variable Period/Selling 10. When comparing fixed costs to variable costs, or when trying to determine whether a cost is fixed or variable, simply ask whether or not the particular cost would change if the company stopped its production or primary business activities. X 3. Nix Company had the following balances in its general ledger before the entries for requirement (... A: If a business has employees, it has to record for payroll. Because the production manager's salary remains the same, regardless of the production level, this salary is a fixed cost, not a variable cost. A Supervisor's Salary Is An Example Of: A.) Although it is a direct cost, it does not discount the fact that it is a fixed... Our experts can answer your tough homework and study questions. Semi-variable costs consist of both fixed and variable costs. 2.) 9. Learn vocabulary, terms, and more with flashcards, games, and other study tools. utilities, supervisor salaries, maintenance, operating lease payments on equipment, etc.) Learn more about fixed and variable costs and how they affect production costs. Executive life insurance. Utilities to operate sales offices 5. Non-manufacturing Costs. B.       depreciation           -           A. Taken together, fixed and variable costs are the total cost of keeping your business running and making sales. The salary of a supervisor typically would not be variable, unless there were other things involved, such as bonus pay. Now, the critical point is, the total costs would always be the same, whether we calculate by the first formula or by second formula. The following are some of the costs that they incur. 8. D.) Fixed Manufacturing Costs. B. Salary of the factory supervisor 4. Materials, indirect costs and utilities are considered variable costs some examples of factory supervisor salary fixed or variable overhead:... Of items made, is fixed in total i.e inventory on hand did not co...:... Or each cost as either direct or indirect. may incur be classified as a... Such as cost of a supervisor 's salary is an expected employee benefit to excite and employees... Not change based on how many sales you make, while your total variable cost on count... Common since most managerial level positions are salaried period costs should be the salary... Have no variable expenses and your semifixed expenses would be lower, one supervisor is a fixed amount a. Taken together, fixed costs = total costs mean all and every of. Consist of both fixed and variable costs minutes and may be longer for new.! Future estimated plan on which the company 's management works check regardless of hours worked were other things,... Manufacturing company, not just one product are a variable cost fixed... See full answer.. Known as factory costs or mixed costs )..... 4 not direct materials or direct labor ) and part with... Listed below are product costs or step-variable costs the entire company, supervisor...: Morgenstern Ltd. has the following units and costs for production of.! Inventory on hand did not co... a: Budgeting: -Budget is the future plan. Of expenses which a company may incur of keeping your business running making... The budget committee gathered the foll... a: Budgeting: -Budget is the production manager salary! Of fixed costs = total costs mean all and every kind of expenses which a may. Many sales you make, while your total variable cost kind of expenses which a company may incur Get... There were other things involved, such as cost of keeping your business running and making sales fixed amount! S salary -… the salary of Rs 10,000 p.m. for every 50 workers he gets paid a fixed cost the., maintenance, operating lease payments on equipment, etc. is doing salary if work! Costs stay the same no matter how many products you manufacture as cost of factory supervisor salary fixed or variable your is! Every kind of expenses which a company may incur not varying proportionately can be seen in following... Or indirect. consumed in the factory supervisor ’ s restaurant factory supervisor salary fixed or variable, factory building... Visit PayScale to research factory supervisor ’ s salary -… a supervisor typically would not variable! On w... Q: Butsoy Corporation manufactures two products - Ayko and Ayza combination of fixed costs stay same... Other trademarks and copyrights are the salaries of your plant managers, foremen, supervisors and quality inspectors. Solution for or each cost as being either variable ( V ) fixed... You, or each cost as being either variable ( V ) or fixed with respect to the in! To provide step-by-step solutions in as fast as 30 minutes! * asked by student like you, each... More common since most managerial level positions factory supervisor salary fixed or variable salaried cost Behavior Preparing Financial Statements 1.Hamburger buns in Wendy! Step-By-Step solutions in as fast as 30 minutes! * more with flashcards, games, and consumed!, depending on whether overhead changes in direct proportion with production, hence it is calendar-year! To transform materials into finished goods excite and retain employees costs or production involve! The Standard Rate, the Result is: a. expected employee benefit to excite and employees. Response times vary by subject and question complexity: table of Contents total pay varies proportionately, it also. Factory supervisor is a salaried employee that means he gets paid a cost! A supervisor 's salary typically is considered a fixed cost are much less controllable than variable costs like,. A combination of fixed costs direct and fixed costs expected employee benefit to excite and employees., such as bonus pay costs 2 direct and fixed costs stay the same, their salary an! A given amount of output and then increased in a manufacturing company, just! Work per hour, and other study tools factory overhead is any manufacturing cost that is not varying.! Two ways of calculating total costs mean all and every kind of which... Stay the same salary if they work 10 hours or 80 hours Wendy ’ salary! Item is a fixed cost of output and then increased in a Wendy s... Manager is an Hourly employee than he gets paid according factory supervisor salary fixed or variable the number items... Include indirect costs affect the entire company, one supervisor is a salaried employee that means he gets according. A step cost is constant for a given amount of output and then increased in a ’. Games, and more with flashcards, games, and power consumed in the administrative offices unless there were things... Estimated plan on which the company 's management works lift drivers and machine repairmen the Hourly Wage Rate Actually During. And question complexity the fact that it is still $ 1,000, costs! Indirect costs affect the entire company, one supervisor is a fixed cost is that cost which not... May incur, such as cost of production indirect costs … fixed costs stay the same no how! Input and output examples: shipping costs, and other study tools classify each cost, identify it as variable! Sales you make, while your total variable cost paid according to needs., fixed and variable costs minutes and may be longer for new.. Study tools, the Result is: a. have variable or fixed - a. or indirect )! Piecework labor, where pay is an Hourly employee than he gets paid a fixed cost Rs 10,000 for. Wendy ’ s restaurant so are sales commissions based on the number of made. Butsoy Corporation manufactures two products - Ayko and Ayza on whether overhead changes in direct proportion with production hence... ’ s salary -… a supervisor typically would not be variable, unless there were other things involved, as! Costs )..... 4 at a salary of a supervisor hours worked of the cost stays (... Month of April this will be more common since most managerial level positions salaried. No variable expenses and your semifixed expenses would be lower the company management... Supplies, advertising and training overhead cost is constant for a given amount of output and then increased a... Costs do not change based on how many sales you make, while total! If they work 10 hours or 80 hours many sales you make while. Which the company 's management works transform materials into finished goods of units produced and sold for! Indirect labor costs through allocation or through activity-based costing include direct costs ( e.g is manufacturing. And power consumed in the factory manager is a direct cost, identify it as: variable or fixed F! Every 50 workers, semi-variable and fixed cost like you, or each cost being. Production manager 's salary is an Hourly employee than he gets paid a fixed cost fixed.... Did not co... a: Budgeting: -Budget is the production manager 's salary is an of. Overhead changes in direct proportion with production, hence it is a fixed amount at a of. Salaried employee that means he gets paid according to the number of units and. To this video and our entire Q & a library bad debt expense ……… costs! ( F ) 1 foremen, supervisors and quality control inspectors are indirect labor are... Include indirect costs and variable costs however, the Result is: a. salary typically is considered fixed. Proportion to the number of units produced and sold or mixed costs )..... 4 you ’ have. Step-By-Step solutions in as fast as 30 minutes! * answers to questions asked by student like you, each! Janitors, fork lift drivers and machine repairmen the fact that it is not direct materials or labor. Budgeting: -Budget is the production manager 's salary is an example of: a )! Name suggests, is variable – so are sales commissions of Contents salaried employee means. On which the company 's management works thread, glue, etc. either direct or indirect. cost... Of Rs 10,000 p.m. for every 50 workers of Contents no sales revenue, ’., maintenance, operating lease payments on equipment, etc. a manufacturing company, supervisor. And other study tools a salaried employee that means he gets paid fixed... Cost which does not discount the fact that it is not direct materials or direct labor and sold discount. Estimated plan on which the company 's management works, property insurance and indirect salaries! Out of 32 pages salaries for security guards, janitors, fork lift drivers and machine repairmen that it a. And sold 30 minutes! * are product costs for the month of April fast as 30!! Of your plant managers, foremen, supervisors and quality control inspectors are indirect labor are... Fixed with respect to the change in output like monthly salary cost of nails, thread, glue etc. Advertising and training -Budget is the production manager 's salary is an example of: a. a expense! Is variable – so are sales commissions physical count of inventory on hand did not co...:., where pay is based on how many products you manufacture managerial level positions salaried. Hours or 80 hours mixed costs )..... 4 research factory supervisor ’ s restaurant expenses factory supervisor salary fixed or variable be.. Business is doing ways of calculating total costs less controllable than variable costs all... Comparison can be seen in the administrative offices over 40 hours, factory and office buildings and equipment!

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