Answer to Question #136602 in Other for Ahmed Goraya

Question #136602
Hassan Bottles Ltd. wants to estimate costs for each product they produce at its Lahore plant. The plant produces three types of bottles at this facility and runs two assembly lines. Three groups of workers work on one of these types of bottles each. Each assembly line can produce all three products. Following costs were incurred in manufacturing these products:

1. Assembly line workers’ salaries

2. Plant manager's salary

3. Depreciation on the assembly line equipment

4. Component parts (raw materials) consumed specifically for the product

5. Wages of security personnel for the factory


a. Classify each of the following costs as either direct or indirect for each product.

b. Classify each of the following costs as either fixed or variable with respect to the number of units
Expert's answer
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