Paul Stanley specializes in manufacturing motorcycle helmets. During the current
ID: 2404872 • Letter: P
Question
Paul Stanley specializes in manufacturing motorcycle helmets. During the current period, the following costs were incurred.
For each cost, indicate whether the cost would be considered to be DM--direct material; DL--direct labor; OH--factory overhead; or PC-period cost.
1. Maintenance costs on factory building _______
2. Factory manager's salary ________
3. Advertising for helmets ________
4. Sales commissions ________
5. Depreciation on factory building ________
6. Rent on factory equipment ________
7. Insurance on factory building ________
8. Plastic used to make helmet ________
9. Utility costs for factory ________
10. Supplies for general office ________
11. Wages for assembly line workers ________
12. Depreciation of office equipment ________
13. Glue and thread used to make the helmet ________
14. Wages of factory janitor ________
Explanation / Answer
1. Maintenance costs on factory building _______ OH 2. Factory manager's salary ________ OH 3. Advertising for helmets ________ PC 4. Sales commissions ________ PC 5. Depreciation on factory building ________ OH 6. Rent on factory equipment ________ OH 7. Insurance on factory building ________ OH 8. Plastic used to make helmet ________ DM 9. Utility costs for factory ________ OH 10. Supplies for general office ________ PC 11. Wages for assembly line workers ________ DL 12. Depreciation of office equipment ________ PC 13. Glue and thread used to make the helmet ________ OH 14. Wages of factory janitor ________ OH