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A construction company based has been awarded a contract concrete seats for the new stadium located in South Africa. The companys CEO appoints a production manager with a salary of R100 000 per month.

The concrete to manufacture each seat cost R55.00 per seat. The production manager estimates that it would take 12 hours to make one seat, at a wage rate of R296.00 per hour worked with a workforce of one hundred workers. With all the labour hours being worked, the concrete mixers are estimated to lose R63 525 in value every year.

The company had to spend an additional R362 565 for costs incurred to put sign boards at the different corners of the stadium informing the public that the company is manufacturing the seats for the new stadium, this is an excellent marketing tool for the company. The construction site requires a site office to be set up. A container is set up as an office at a rate of R36 000 per month. The site will also employ, an administrator for the site at a salary of R29 500 per month.

A security company is appointed to protect the site and its equipment, in which the company will provide 2 24 hour armed guards per shift for a rate of R65 963 per month. The company also pays for water and electricity.

Required:

Identify all the costs involved from the information provided above, then classify the cost you have selected in terms of Cost Behaviour (Variable, Fixed or Mixed Cost) and then further classify the cost as either Product Cost (Manufacturing Cost) or Period Cost (Non-Manufacturing Cost).

Cost item	Fixed Cost	Variable Cost	Mixed Cost	Product Cost	Period Cost

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