Cost classifacation classify the follwing as direct materials, direct labor, fac
ID: 2425048 • Letter: C
Question
Cost classifacation
classify the follwing as direct materials, direct labor, factory overhead, or selling and administrative expense
a. steel used and administrativve expense b. cloth used in a shirt factory c. fiberglass used by a sailoat builder d. cleaning solvent for the factory builder e. wages of a binder employed in a printing plant f. insurance on factory machines g. rent paid for factory buildings h. wages of tthe machining department supervisor I. leather used in a shoe factory J. wages of a factory janitor
K. electric power consumed in operating factory machines L. depreciation on corporate offices. M. fuel used in heating a factory N. paint used in the manufacture of jet skis O. wages of an ironworker in the construction business P. electricity used in lighting sales offices.
Explanation / Answer
a.Steel used - Direct Material
b.Shirts used- Direct Material
c.fiberglass -Direct material
d.cleaning Solvent-Factory Overhead
e.wages -Direct labour
f.Insurance :factory Overhead
g.rent-factory overhead
h wages-direct labour
i.leather- direct material
j.wages-direct labour
k.electric power- Factory overhead
l.depreciation-selling and administration
m.fuel-direct material
n.paint-selling and administration
o.wages - direct material
p.electricity-factory overhead