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2 photos. Answer E6-2B & E6-6B fully w formulas if used. Thank you! ...

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Accounting

2 photos. Answer E6-2B & E6-6B fully w formulas if used. Thank you! image
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Exercise 6-2B Distinction between relevance and cost behavior Norita Company makes and sells a toy plane. Norita incurred the following costs in its most recent fiscal year: Cost Items Reported on Income Statement Shipping and handling costs ($0.75 per unit) Cost of renting the administrative building Utility costs for the manufacturing plant ($0.25 per unit produced Manufacturing plant manager's salary Materials costs ($4 per unit produced) Real estate taxes on the manufacturing plant Depreciation on manufacturing equipment Packaging cost ($1 per unit produced Wages of the plant security guard Costs of TV commercials Labor costs ($3 per unit) Sales commissions (1% of sales) Sales manager's salary Norita could purchase the toy planes from a supplier. If it did, the company would continue to sell them using its own logo, advertising program, and sales staff. Required Identify each cost as relevant or irrelevant to the outsourcing decision and indicate whether the cost is fixed or variable relative to the number of toy planes manufactured and sold

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