Which of the following costs would be included in the cost of a manufactured product according to the variable costing concept? (a) Rent on factory building, (b) Direct materials, (c) Property taxes...

SOLUTION
Which of the following costs would be included in the cost of a manufactured product according
to the variable costing concept?
(a) Rent on factory building Not to be included Fixed Factory / Manufacturing overhead
(b) Direct materials Will be included Direct Material
(c) Property taxes on factory building Not to be included Fixed Factory / Manufacturing overhead
(d)
Electricity purchased to operate
factory equipment
Will be included
Variable Factory / Manufacturing
overhead
(e) Salary of factory supervisor Not to be included Fixed Factory / Manufacturing overhead
(f) Depreciation on factory building Not to be included Fixed Factory / Manufacturing overhead
(g) Direct labor Will be included Direct Labor
Under Variable Costing (also known as Direct Costing) concept, the cost of the goods
manufactured is composed only...