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Barnaby's Bicycle Company manufactures high-quality mountain bikes. The company's managerial accountant has come to you...

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Accounting

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Barnaby's Bicycle Company manufactures high-quality mountain bikes. The company's managerial accountant has come to you for help. She needs to classify and identify each of the following costs before she can calculate the cost to produce each mountain bike. 1) Classify each of the costs listed in the chart on the following page into three categories based on the following questions Can this cost be directly and conveniently traced to each bicycle that is manufactured, or is doing so either not possible or not worth the effort? 1. Is this cost related to manufacturing the bicycles? If so, what type of cost is it? Or is it a non- manufacturing or period expense? 2. Will the total cost vary with the number of bicycles manufactured and sold, or will it remain the same regardless of how many bikes are produced and sold? 3. The first item in the chart is completed as an example QUEsTON PRODUCT CORTS Direct Cost indirect Direct Fxed Cost Cirect eost Matertals Lebor overheadExpenses Cost Aloytubing used to make the bkycle trames Hourly wages pakd to employees who cut and weld the allay tubing Factory rent Blcycle weels and tires Miscellaneous bicycle components Insurance on the tactory Insurance on the president's compary car

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