Custom Quilters makes decorative comforters, quilted garments, and other products in a small sewing factory. In 2014, the company expects to make 2,000 comforters. With respect to the comforters, how would the wages of sewing machine operators be classified?
A) Direct and variable
B) Direct and fixed
C) Indirect and variable
D) Indirect and fixed

Question

Quizplus · Accepted Answer

The wages of the sewing machine operators directly affect the cost of producing the comforters and vary according to the level of production. Therefore, they are classified as direct and variable costs.

Custom Quilters Makes Decorative Comforters, Quilted Garments, and Other Products