Question

Barton's Taco Tico has four taco makers and ten other employees who take orders from customers and perform other tasks. The four taco makers and the other employees are paid an hourly wage. How would one classify (1) the wages paid to the taco makers and other employees and (2) materials (e.g., cheeses, salsa, tomatoes, lettuce, taco shells, etc.) used to make the tacos

Answer 1

Answer:

Barton's Taco Tico

1. The wages paid to the taco makers and other employees are variable costs.

2. The cost of materials are also variable costs.

Explanation:

Variable costs vary in total but remain fixed per unit.  For example, the wages paid to the workers have a fixed rate.  Therefore, the total will vary, depending on the total hours worked by each worker.  Similarly, the costs of materials vary in total, but the price per material may be relatively fixed.