Classify the following costs incurred by a steel railing manufacturing company as: (1) direct materials, (2) direct labor, (3) factory overhead, or (4) period costs. Wages paid to production workers _________________ Utilities in the office _________________ Depreciation on machinery in the plant _________________ Steel _________________ President’s salary _________________ Factory supplies _________________ Rent on office equipment _________________ Maintenance workers’ wages _________________ Utilities in the plant _________________ Maintenance on office equipment _________________

Classify the following costs incurred by a steel railing manufacturing company as: (1) direct materials, (2) direct labor, (3) factory overhead, or (4) period costs. Wages paid to production workers _________ Utilities in the office _ Depreciation on machinery in the plant _ Steel _ President’s salary _ Factory supplies _ Rent on office equipment _ Maintenance workers’ wages _ Utilities in the plant _ Maintenance on office equipment _________

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 11E: Classify each of the following items of factory overhead as a(n) unit-level, batch-level,...

See similar textbooks

Similar questions

Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $100,000 60,000 7,500 110,000 13,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,000 14,000 21,000 35,000 50,000
Indicate whether each of the following costs of a pencil manufacturer would be classified as direct materials (DM), direct labor (DL), or manufacturing overhead (MO).a. ____ Depreciation of pencil painting machineryb. ____ Lead inserted into pencilsc. ____ Factory utilitiesd. ____ Wages of assembly line workere. ____ Salary of supervisorf. ____ Factory machinery maintenanceg. ____ Woodh. ____ Eraser compound
Classify the following items as Direct materials, Selling and administrative expense, Factory overhead, or Direct labor. a. Rent expense on factory building b. Sales supplies used c. Factory supplies used d. Indirect materials used e. Wages of assembly line personnel f. Cost of primary material used to make product g. Depreciation on office equipment h. Rent on office facilities i. Insurance expired on factory equipment j. Utilities incurred in the office k. Advertising expense
Classifying Costs as Factory Overhead Which of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks? Item Part of Factory Overhead: Yes/No a. Plant manager’s salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies b. Depreciation on Flat Rock, Michigan, assembly plant c. Dividends paid to shareholders d. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant e. Leather to be used on vehicles that have leather interiors f. Depreciation on mechanical robots used on the assembly line g. Consultant fees for a study of production line efficiency h. Dealership sales incentives i. Vice president of human resources’s salary j. Property taxes on the Dearborn, Michigan, headquarters building
Required: Classify the following costs as period or traceable costs. Depreciation on office building Insurance expense for factory building Product liability insurance premium Transportation charges for raw materials Factory repairs and maintenance Rent for inventory warehouse Cost of raw materials Factory wages Salary to chief executive officer Depreciation on factory Bonus to factory workers Salary to marketing staff Administrative expenses Bad debt expense Advertising expense Research and development Warranty expense Electricity for plant
Indicate whether each of the following costs associated with production would be classified as Direct Materials, Direct Labor or Manufacturing Overhead. Hourly workers assembling goods Grease used to maintain machines Factory property taxes Bike frame used to build a racing bike Salaried supervisor responsible for several product lines – Manufacturing Overhead Depreciation on production equipment Factory utilities – Manufacturing Overhead Salary for salespeople - Factory insurance Salary of chief financial officer Raw materials used in production easily traced to a product Computer equipment depreciation for accounting department Production line workers salary Glue used to assemble toys Insurance for factory equipment
Which of the following would not be an element of factory overhead? a. salary of a marketing manager b. amortization on the maintenance equipment c. salary of the plant supervisor d. property taxes on the plant buildings
Which of the following costs is best classified as a fixed cost with respect to volume of activity? (See your Chapter 20 notes, page 5) Direct labor Electricity used to heat, light, and cool a factory Cleaning supplies used in an automobile assembly plant Straight-line depreciation expense of a machine used in a factory Total cost of salaries paid to quality inspectors in a manufacturing plant Tires used in an automobile manufacturing plant
For manufacturing firms, inventoriable costs include ________. a. plant supervisor salaries. b. depreciation motor vehicles – sales staff. c. advertising costs. d. distribution costs.
Which of the following items would be classified as part of factory overhead? a. amortization of manufacturing patents b. factory supplies used c. production supervisors' salaries Od. all of these choices
6) Which of the following costs would be included as part of factory overhead? depreciation of plant equipment а. b. direct labor depreciation on the corporation's office building с. d. paper used in the production of books
Part 1. Classify the above items into the following categories (a) direct materials, (b) direct labor and (c) manufacturing overhead. Presented below is a list of costs and expenses usually incurred by Stensland Corporation, a manufacturer of furniture, in its factory: 1. Salaries for assembly line inspectors 2. * Insurance on factory machines 3. Upholstery used in manufacturing fumiture 4. Wages paid to assembly line workers 5. Depreciation of factory machinery 6. Salaries of factory supervisors 7. Wood used in manufacturing fumiture 8. Glue, nails, paint, and other small parts used in production 9. Property taxes on factory building 10. Factory manager's salary