Please classify the following as: Cost, Direct materials cost, Direct labor cost
ID: 2423591 • Letter: P
Question
Please classify the following as: Cost, Direct materials cost, Direct labor cost,
Factory overhead cost, Selling expense, or Admin. expense
a. memberships for key executives in the Bass World Association.
b. cost of electrical wiring for boats.
c. wood paneling for use in interior boat trim.
d. annual bonus paid to top executives of the company.
e. legal department costs for the year.
f. salary of shop supervisor.
g. salary of president of company.
h. fiberglass for producing the boat hull.
i. cost of normal scrap from defective hulls.
j. oil to lubricate factory equipment.
k. special advertising campaign in Bass World.
l. masks for use by sanders in smoothing boat hulls.
m. hourly wages of assembly line workers.
n. decals for boat hull, the cost of which is immaterial to the cost of the final product.
o. salary of chief financial officer.
p. power used by sanding equipment.
q. straight-line depreciation on factory equipment.
r. cost of boat for "grand prize" promotion in local bass tournament.
s. canvas top for boats
t. commissions to sales representatives, based upon the number of boats sold
u. yearly cost of the maintenance contract for robotic equipment.
v. steering wheels.
w. cost of metal hardware for boats, such as ornaments and tie-down grasps.
x. boat chairs.
y. annual fee to pro-fisherman Bill Tennessee to promote the boats.
z. cost of paving the headquarters employee parking lot.
Explanation / Answer
a. memberships for key executives in the Bass World Association = Admin. expense
b.cost of electrical wiring for boats = Direct materials cost
c. wood paneling for use in interior boat trim = Direct materials cost
d. annual bonus paid to top executives of the company = Admin. expense
e. legal department costs for the year.= Admin. expense
f. salary of shop supervisor. = Admin. expense
g. salary of president of company. = Admin. expense
h. fiberglass for producing the boat hull = Direct materials cost
i. cost of normal scrap from defective hulls = Factory overhead cost
j. oil to lubricate factory equipment.= Factory overhead cost
k. special advertising campaign in Bass World.= Selling expense
l. masks for use by sanders in smoothing boat hulls. = Factory overhead cost
m. hourly wages of assembly line workers. = Direct labor cost
n. decals for boat hull, the cost of which is immaterial to the cost of the final Factory overhead cost
r. cost of boat for "grand prize" promotion in local bass tourname product. = Factory overhead cost
o. salary of chief financial officer. = Admin. expense
p. power used by sanding equipment. = Factory overhead cost
q. straight-line depreciation on factory equipment. =nt. = Selling expense
s. canvas top for boats = Direct materials cost
t. commissions to sales representatives, based upon the number of boats sold = Selling expense
u. yearly cost of the maintenance contract for robotic equipment. = Factory overhead cost
v. steering wheels. = Direct materials cost
w. cost of metal hardware for boats, such as ornaments and tie-down grasps. = Direct materials cost
x. boat chairs. = Direct materials cost
y. annual fee to pro-fisherman Bill Tennessee to promote the boats.= Selling expense
z. cost of paving the headquarters employee parking lot.= Admin. expense